Electric Car Owners to Benefit from New Energy Price Cap
From July 1, 2025, electric car owners across the UK could benefit from significant savings when charging their vehicles at home. The new energy price cap, set by regulator Ofgem, will fall to £1,720 per year for a typical household, representing a seven percent decrease.
Savings for Electric Vehicle Drivers
The new Standard Variable Tariff for electricity will be reduced to 25.73p per kilowatt hour, making it cheaper than ever to charge an electric vehicle (EV) at home. Drivers with EV-friendly home energy tariffs could save even more, with rates slashed to as low as 7p/kWh. For instance, charging a Volkswagen ID.5 on an Ohme smart charger with an Octopus tariff costs just £5.39, compared to £19.82 on the Standard Variable Tariff.
Comparison with Petrol Drivers
Over the course of a year, car owners typically drive an average of 6,800 miles. For EV drivers, this mileage would cost approximately £437.41 for 12 months, or as low as £119 on an Intelligent Octopus Go tariff. In contrast, travelling the same distance in an equivalent petrol car would cost over £1,000.
Expert Insights
David Watson, CEO of Ohme, emphasized that charging an electric vehicle at home will always be the cheapest option for motorists. He encouraged drivers with access to home charging to switch to a specialized tariff to save even more money. “When driving an EV, as much as possible, your main focus should be on aiming to charge at home where it’s cheapest,” Watson advised.
UK Charging Infrastructure
The UK has almost 81,000 electric car charging devices across nearly 40,000 locations. The Government aims to install 300,000 chargers by the end of the decade. While the number of public chargers is growing, charging at home remains the most cost-effective option for EV drivers.
The new energy price cap is valid until September 30, 2025, providing a temporary reprieve for households and EV owners alike. As the UK continues to transition towards electric vehicles, understanding the cost savings associated with home charging will become increasingly important for drivers.
