A little over a decade ago, government policy took a decisive turn. In the aftermath of the 2015 “dieselgate” scandal, support for diesel vehicles gave way to a strong push toward electric cars. The message was clear: zero-emission vehicles would not only improve public health and protect the environment but also prove significantly cheaper to run, thanks to the assumed abundance of low-cost electricity.
Today, that promise is being questioned. According to reporting originally published by Times UK, electric vehicle drivers are increasingly voicing frustration at the cost of public charging. On major roads, prices can reach as high as 89 pence per kilowatt-hour, bringing the cost of charging close to that of filling a petrol or diesel vehicle, particularly during recent fuel price spikes linked to geopolitical tensions.
At the center of the issue is the complex and often misunderstood economics of building a national charging network. Private companies have taken the lead in developing infrastructure, largely without direct government subsidies or clear mandates. The result, some critics argue, resembles a fragmented and uneven system struggling to meet growing demand.
Delvin Lane, chief executive of InstaVolt, a leading operator in the sector, is among those attempting to clarify the situation. The UK now has around 80,000 charging points of varying speeds, but the real demand lies in ultra-rapid chargers capable of delivering a significant boost in under ten minutes. There are currently about 27,000 such chargers, with thousands more in development.
InstaVolt, backed by Swedish private equity firm EQT, has focused on installing these high-speed chargers along major routes, often paired with amenities such as food and drink outlets. The company competes with major players including Tesla, the petrol station group MFG, Osprey, and Gridserve. Yet Lane highlights an irony at the heart of the business: most electric vehicle owners—around four in five—primarily charge their cars at home, making them both customers and competitors.
The disparity in cost between home and public charging is stark. Overnight home charging can cost between 7 and 10 pence per kilowatt-hour, compared with up to 89 pence at public ultra-rapid stations. A key factor behind this difference is taxation. Domestic electricity is subject to a reduced VAT rate of 5 percent, while public charging incurs the full 20 percent rate. This means that nearly 18 pence of every kilowatt-hour charged on the road goes directly to government tax.
However, taxation is only part of the story. Lane points to the high costs of equipment, installation, and grid connection as the primary drivers of pricing. Installing a single ultra-rapid charger can cost between £60,000 and £70,000 on average, and in some cases significantly more if a high-voltage grid connection is required. The availability of such connections varies widely, making costs unpredictable.
Roughly one-third of installation costs go toward the charging equipment itself, while civil engineering work accounts for a smaller portion. The largest share—around half—covers the expense of connecting to the high-voltage grid, including cabling, substations, and ongoing charges imposed by power distribution operators. These costs accumulate before a single unit of electricity is even sold.
Even the electricity itself is only part of the expense. For every pound paid by charging operators to energy providers, only about 40 percent covers the actual power. The remainder consists of standing charges and environmental levies, many of which are rising as governments invest in modernizing the grid and integrating renewable energy sources.
These pressures are squeezing profit margins across the sector. While companies acknowledge the necessity of upgrading infrastructure, there is growing concern that the financial burden falls disproportionately on charging operators. To mitigate these challenges, some firms, including InstaVolt, are investing in battery storage systems and solar installations at their sites, aiming to reduce reliance on grid connections and manage costs more effectively.
Despite these efforts, the industry faces a pivotal moment. Lane believes that the electric vehicle charging sector is entering a phase of consolidation, where smaller players may merge or exit the market altogether. He argues that inconsistent government policy has compounded the problem, particularly in areas such as taxation and grid access.
Government ambitions for electric vehicles have been clear for years. In 2017, then environment secretary Michael Gove announced plans to phase out the sale of new petrol and diesel cars by 2040, a target that has since shifted under successive administrations. At the time, industry leaders warned that such goals depended heavily on technological readiness, infrastructure development, and consumer acceptance.
Nearly a decade later, those concerns remain unresolved. While the number of electric vehicles on the road continues to grow, the infrastructure needed to support them is still evolving. High costs, regulatory inconsistencies, and technical challenges have created a gap between the vision of affordable, accessible electric driving and the reality faced by motorists today.
As drivers weigh the benefits of switching to electric vehicles, the experience of charging—particularly on long journeys—has become a critical factor. Until the cost and convenience of public charging improve, the transition to a fully electric future may prove more complex than originally anticipated.
