Changes announced this past week are good news for electric car drivers
EV drivers across the UK will see lower home charging costs following Ofgem’s announcement earlier this week that the energy price cap is being reduced. The move seems to strengthen the cost advantage of electric vehicles over petrol and diesel.
The UK’s adoption of EVs continues to accelerate, with more than 1.85 million EVs on Britain’s roads, accounting for 23.4% of all new car registrations last year – a 24% increase year-on-year. The combination of lower energy prices and growing adoption potentially strengthens the case for going electric.
Analysis by car finance lender Carmoola has found that home charging provides a “clear cost advantage” over petrol and diesel. Using the UK’s average monthly mileage of 592 miles, it said the average EV home charging cost was around £44, while petrol came out at around £92 and diesel at £98.
When the new energy cap comes into effect on April 1, a full 71.1kWh charge will costs around £17.54, keeping running costs for EVs roughly half of what the average UK petrol and diesel vehicle owner spends on fuel. The current cost is £19.69, so EV drivers are looking at 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 calculated the impact of the new Ofgem price cap (April 1 to June 30, 2026) compared with the current cap (January 1 to March 31, 2026) using the standard charging formulas outlined by Zapmap – a government-certified EV charging resource. Zapmap’s recommended calculations were used to estimate both cost of a full charge: charge cost (£) = battery energy added (kWh) × electricity cost (p/kWh).
Zapmap data was also used as a reference for the estimated 1.85 million EVs currently on UK roads. Average battery capacity and range assumptions were based on new electric vehicles listed on EV Database, giving an average battery size of 71.1 kWh and an average range of 236 miles.
Efficiency assumptions were taken from The Electric Car Scheme, which states that the average EV typically delivers around three miles/kWh, while more efficient models can achieve up to five miles/kWh.
Average UK car mileage (2026) was taken from a study conducted by NimbleFins. Average UK petrol costs per month were calculated using FleetNews’s ‘Car fuel cost calculator’.
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