Rapid EV charging prices could hit £1 per kWh in 2027
Electric car drivers could find rapid charging prices of £1 per kWh become commonplace next year, up from an average of 79p in 2026. That is the warning from an impact assessment published by the EV newsletter The Fast Charge, in partnership with charge point operator Zest. The report blames soaring grid charges and says drivers without a driveway will be hit hardest.
Fixed grid charges have risen sharply
The assessment draws on tariffs published by the UK’s Distribution Network Operators (DNOs) and the National Energy System Operator (NESO). It found that the average fixed grid charge for a standard rapid charger has climbed from £61.47 a week in 2021 to £440.13 a week in 2026. Operators pay this whether or not a car plugs in. On tariffs already published for 2027, the same charger will pay £77.39 a day.
Across the UK, Reverse the Charge estimates that rapid charger operators will pay around £336 million in grid charges this year. That figure will rise by a further £77 million to £413 million in 2027, even if no new chargers are built.
The Government’s Budget 2026 decision to provide £100 million to cut charging costs offers little relief. The money will only be available for local, lower-powered chargers, rather than ‘splash and dash’ rapid chargers.
Pressure on drivers without home charging
A looming change to the Zero Emission Vehicle mandate, plus higher prices from energy networks next year, is likely to put pressure on charging networks. They may raise prices or take losses on low-utilisation sites. Drivers without off-street parking will feel this most, and the RAC Foundation estimates that this covers around a third of UK households.
Documents obtained by Reverse the Charge under the Freedom of Information Act show that the Treasury has known about the problem and that fixes are on the table. In a 2025 briefing, Ofgem told Treasury officials that high fixed grid charges were keeping rapid chargers in an “unproductive cycle”, and that this resulted in a “high cost per customer.” Two proposed rule changes would cut grid charges for EV charging. DCP 420 and DCP 454 have sat in industry working groups for three years, and neither has yet reached Ofgem for a decision.
Fast Charge editor calls for government action
Tom Riley, author of the report and Editor of The Fast Charge, commented: “Grid standing charges are effectively a feudal tax, enabled by Ofgem without proper thought, with money going from a driver’s pocket straight to energy networks.
“At a time when the cost of running non-EVs is near a record high, the Government must do all it can to provide relief for people wanting to go electric so they can save money. At present, the UK is allowing a situation where going electric, especially if you don’t have a driveway, could be more expensive than sticking with a banger.
“The Government’s own review has confirmed what charging networks have been warning about. Ofgem has known about this problem for at least a year. It’s time to fix it.”
Zest says the solutions are ready
Robin Heap, Founder and CEO of EV charging network Zest, said: “The switch to capacity-based network charges was never intended to put the brakes on EV adoption. For public charging, however, it has created an egregious cost burden that pushes up prices for drivers and means many otherwise investable charging projects are delayed or shelved.
“Energy-intensive industries already receive recognition that high electricity costs can damage investment and competitiveness. Public EV charging faces the same structural problem, yet CPOs receive no equivalent protection despite building infrastructure essential to the UK’s transition to electric transport.
“The solutions have been developed by the energy industry and are ready to implement. Reforming these charges would bring stalled projects back into play, unlock private investment and give drivers better access to affordable, reliable charging, particularly those without the option of charging at home.”
Little revenue is left at new charging sites
The assessment features two real Zest sites. They show how little revenue remains at newly established locations while utilisation is still at normal early-stage levels. At an urban charging hub in Birmingham, electricity and grid costs take 48p of the 58p a driver pays per kWh before VAT. That leaves just 10p to cover every other cost. At an on-street ultra-rapid charger in London, they take 58p of 64p, leaving only 6p.
Those remaining revenues must cover the power connection, land rent or purchase, civil engineering works, planning and legal fees, installation and commissioning, charging equipment, backend systems and payments, 24/7 driver support, landlord or council revenue share, maintenance and safety, as well as any other taxes and operating costs.
Reverse the Charge calls on Ofgem to act
Reverse the Charge is calling on Ofgem to urgently fix capacity-based billing for EV charging, across both local and national grid charges. It also wants the Chancellor, John Healey, to back the change, as the Government’s own review recommends.
The full report, Reverse the Charge: How an Ofgem policy flaw is threatening EV take-up, is available at reversethecharge.co.uk.
