The RAC has warned that higher electricity prices could derail the Government’s net-zero transport ambitions, despite the minister latest attempt to cushion their impact on households.
Last week new prime minister Liz Truss announced that the energy price cap would be replaced by a new Energy Price Guarantee, which the Government said will ensure that from 1 October a typical household pays an average £2,500 a year on their energy bill, for the next two years.
It means that the average unit price for electricity for dual fuel customers paying by direct debit will be limited to 34.0p/kWh.
RAC electric vehicle spokesperson Simon Williams said: ‘The 34p per kilowatt hour (kWh) Energy Price Guarantee will significantly cushion the impact of rising energy prices affecting drivers of electric cars.
‘From 1 October it will cost on average £22.22 to fully charge a typical 64kWh family-sized electric SUV, £3.85 more than it does currently, and a third less than it would have cost under the new cap that was announced by Ofgem on 26 August (£33.80).’
He added: ‘It remains to be seen what impact the Government’s new package of help will have on charge point operators and the prices they set drivers, but we remain concerned about the rising wholesale costs of energy that may force some to increase their prices in the coming months.
‘There’s the potential for the Government’s net-zero transport ambitions to be derailed if higher electricity prices put drivers off from switching to an electric model, which is why we have called on the new transport secretary to cut the 20% VAT rate on public charge points to match the 5% charged on domestic electricity.’
