Public Electric Vehicle (EV) charging network GRIDSERVE is cutting the price of its charging network by 20% for one day only (1 October) to illustrate lower taxation.
The one-day reduction coincides with the UK Government’s introduction of a temporary 0% VAT rate on domestic electricity, which comes into effect on 1 October and runs until 31 March 2027.
But public EV charging remains at 20% VAT, with the one-day price cut by GRIDSERVE showing to drivers what significantly cheaper public charging could look like.
In 2025, GRIDSERVE commissioned research which found that 49% of non-EV drivers surveyed would switch to an EV sooner if public charging had the same VAT rate as charging at home.
Additionally, public EV charging hubs continue to face substantial grid connection costs, much of which is paid for via capacity-related standing charges.
Independent analysis by Cornwall Insight has found that standing charges for ultra-rapid EV charging hubs have increased by up to 462% since 2021, adding further pressure to the cost of public charging.
The UK Government is currently reviewing the cost of public EV charging and considering how policy changes can help consumers.
Rebecca Trebble, Chief Customer Officer of GRIDSERVE, said:
“On 1 October, millions of households will see VAT removed from their electricity bills. For EV drivers who cannot charge at home, however, the tax treatment of electricity is very different.
“We want to make that difference tangible. Rather than simply talking about what cheaper public charging could look like, we are giving drivers the opportunity to experience it for themselves.
“GRIDSERVE has been clear that if the Government reduces the VAT burden on public EV charging, we believe the future benefit should be passed directly through to drivers. Our 1 October initiative demonstrates this principle in practice: when the cost of charging comes down, drivers will see those savings at the plug.”
Shane Brennan, chief executive officer of ChargeUK, added:
“Cutting VAT on home electricity is the right call at the right time, it will relieve some pressure on what will be a tough winter for energy consumers, including EV drivers.
“However, it will also entrench the driveway divide for those current and want-to-be EV drivers who pay the full 20 per cent VAT to charge their cars at the worst moment. “With diesel prices topping £2 a litre this week, and petrol not far behind, encouraging all drivers to go electric is the right thing to do, let’s make it fair and accessible for all.”
