November 2026
EV charging costs could rise above £1 per kWh in 2027 due to flawed Ofgem policy
The amount paid to energy networks to keep a single rapid charger live has risen by 616% since 2021, according to Reverse the Charge, an impact assessment published today.
This rise stems from a 2019 Ofgem decision which, since 2022, has allowed businesses to be billed based on how much electricity they could use, rather than the amount they do use.
The Government’s own independent review, published alongside the Budget, found Ofgem’s rule change had a ‘severe impact’ on charging costs, but the Budget offered no help for rapid chargers.
9 November 2026 – Drivers of electric cars could find rapid charging prices of £1 per kWh become commonplace next year, up from an average of 79p in 2026, according to an impact assessment published by the EV newsletter, The Fast Charge, in partnership with charge point operator Zest.
Based on tariffs published by the UK’s Distribution Network Operators (DNOs) and the National Energy System Operator (NESO), the assessment has found that the average fixed grid charge for a standard rapid charger has risen from £61.47 a week in 2021 to £440.13 a week in 2026. This is paid whether a car plugs in or not. On tariffs already published for 2027, the same charger will pay £77.39 a day.
This is despite the Government’s decision in Budget 2026 to provide £100 million to cut charging costs, as this money will only be available for local, lower-powered chargers, rather than ‘splash and dash’ rapid chargers.
Across the UK, Reverse the Charge estimates operators of rapid chargers will pay around £336 million in grid charges this year, rising by a further £77 million to £413 million in 2027, even if no new chargers are built.
In the face of a looming change to the Zero Emission Vehicle mandate, plus the higher prices due to kick in from energy networks next year, there is likely to be pressure on the UK’s charging networks to increase prices or take losses on low utilisation sites. This will hit those without off-street parking, which the RAC Foundation estimates is around a third of UK households, the hardest.
Documents obtained by Reverse the Charge, under the Freedom of Information Act, reveal that the Treasury has been aware of the negative impacts and that fixes are on the table. In a 2025 briefing, Ofgem told Treasury officials 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 that would cut grid charges for EV charging, DCP 420 and DCP 454, have been in industry working groups for three years and have yet to reach Ofgem for a decision.
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.”
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.”
The assessment features two real Zest sites, showing how little revenue is left at newly established charging sites 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, leaving 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 is calling on Ofgem to urgently fix capacity-based billing for EV charging, across both local and national grid charges, and on the Chancellor, John Healey, to back it, 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.
ENDS
Further information:
Reverse the Charge is a new impact assessment which calls for urgent reform of the grid charges paid by public EV charging sites in the UK.
Reverse the Charge: How an Ofgem policy flaw is threatening EV take-up is an assessment of how rising grid standing charges will impact drivers, businesses and the UK’s transition to electric vehicles. It was written by Tom Riley, founder of The Fast Charge EV Newsletter, an independent publication which covers electric vehicle policy, in partnership with Zest, one of the UK’s fastest-growing EV charging networks, operating more than 3,400 charge points.
The assessment can be downloaded here.
About the analysis:
The assessment is based on modelling a standard rapid charger with two 100kW connectors on a 232 kVA connection.
The analysis used an average of published tariffs from eight of Great Britain’s 14 distribution areas, plus NESO transmission charges. The 2027 figures use NESO’s initial 2027/28 tariffs.
The national sector cost estimate relies on Zapmap’s count of 29,246 rapid and ultra-rapid chargers in July 2026, with no growth assumed.
To note, newer ultra-rapid chargers need larger connections, especially at sites where there are multiple devices, so the figures published are conservative. Furthermore, this analysis only covers rapid chargers; AC power has not been considered.
Two sites featured in the analysis come from real Zest sites, with revenue modelled at an early-stage benchmark of 50 kWh per connector per day.
The Government’s Cost of Public Charging Review estimates standing charges rose 83-283% between 2021 and 2026, based on local distribution charges only. This assessment’s 616% figure also includes national transmission charges and fixed policy and supplier costs, for a defined connection.