Date set as rule change ‘cuts EV costs every time’ | Personal Finance | Finance
Electric vehicle motorists throughout Britain will benefit from reduced home charging expenses following Ofgem’s announcement this week that the energy price cap is being lowered. The decision appears to reinforce the financial benefits of electric vehicles compared to petrol and diesel alternatives.
Britain’s uptake of EVs continues to gather pace, with more than 1.85 million EVs now on the nation’s roads, representing 23.4% of all new car registrations last year – a 24% rise year-on-year. The pairing of reduced energy costs and increasing uptake could further bolster the argument for switching to electric.
Research by car finance provider Carmoola has discovered that home charging offers a “clear cost advantage” compared to petrol and diesel. Based on Britain’s average monthly mileage of 592 miles, it stated the typical EV home charging expense was approximately £44, while petrol worked out at roughly £92 and diesel at £98.
Once the new energy cap takes effect on April 1, a complete 71.1kWh charge will cost about £17.54, maintaining running expenses for EVs at roughly half of what the typical UK petrol and diesel vehicle owner pays for fuel. The present cost stands at £19.69, meaning EV drivers are set for a saving of up to £2.15 per home charge.
Aidan Rushby, founder and CEO of Carmoola, said: “Ofgem’s reduction of the energy price cap is encouraging news for the UK’s growing EV community. Many drivers consider total monthly costs when deciding which vehicle to buy and electric remains the most cost-effective fuelling option.
“With EV adoption at record levels and home charging costs now lower, the economics of going electric are stronger than ever. Households can save even more by charging during off-peak periods, making electric vehicles both affordable and flexible for everyday use. For drivers thinking about their next car, this announcement highlights the financial benefits of considering a switch to electric.”
Methodology
Carmoola assessed the effect of the new Ofgem price cap (April 1 to June 30, 2026) against the existing cap (January 1 to March 31, 2026) utilising the standard charging formulas provided by Zapmap – a government-certified EV charging resource. Zapmap’s recommended calculations were employed to estimate both cost of a full charge: charge cost (£) = battery energy added (kWh) × electricity cost (p/kWh).
Zapmap data was also referenced for the estimated 1.85 million EVs currently on UK roads. Average battery capacity and range assumptions were derived from new electric vehicles featured on EV Database, yielding an average battery size of 71.1 kWh and an average range of 236 miles.
Efficiency assumptions were sourced from The Electric Car Scheme, which indicates that the average EV typically achieves around three miles/kWh, whilst more efficient models can reach up to five miles/kWh.
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