Grid standing charges could push rapid EV charging to £1/kWh in 2027, report warns
An impact assessment from The Fast Charge and charging operator Zest says capacity-based network charges on a two-connector 100kW rapid charger have risen 616% since 2021. It forecasts higher prices at thousands of public sites for drivers who rely on them, and calls for rule changes DCP 420 and DCP 454.
EV publication The Fast Charge and charging network Zest have published Reverse the Charge, an impact assessment built on figures from the UK's Distribution Network Operators (DNOs) and tariffs published by the National Energy System Operator (NESO). It concludes that, unless Ofgem's 2019 decision is reversed, electric car drivers could pay £1 per kWh at thousands of public charging sites in 2027, with most of that money going to energy networks.
The decision in question came from Ofgem's Targeted Charging Review. According to the report, it allowed energy networks to bill businesses on their capacity to use electricity rather than on how much they consume, and took effect in 2022. These grid standing charges are payable whether or not a charger sells any electricity. For a two-connector 100kW charger, the report puts the rate at £8.78 a day in 2021 and £62.88 now, a 616% increase.
EV Powered, which reported the study's detailed figures, said the report estimates that the same charger's standing charge will rise to £77.39 a day in 2027, or more than £28,000 a year, based on published DNO and NESO tariffs. Across the sector, it estimates that rapid charger operators will pay around £336 million in grid charges in 2026 and £413 million in 2027, even if no new chargers are built.
The report uses two of co-author Zest's own sites as examples. At an urban charging hub in Birmingham, electricity and grid costs make up 48p of the 58p/kWh price before VAT. At an on-street ultra-rapid charger in London, they make up 58p of 64p.
According to Zapmap figures cited by EV Powered, the average rapid charging session now costs 82p/kWh, up from 79p/kWh when the report's data was compiled. THRIVE tracks how much more public EV charging costs per mile than charging at home.
Proposed rule changes
The report's authors argue that two proposed rule changes, DCP 420 and DCP 454, would cut grid charges for EV charging. DCP 420 would let eligible sites move to a lower standing charge band, and DCP 454 would return them to a consumption-based band. Both have spent three years in industry working groups and have yet to reach Ofgem for a decision.
The report also cites internal Ofgem documents obtained under the Freedom of Information Act. It says that in a briefing for the Treasury dated October 2025, Ofgem described high fixed grid charges as keeping rapid chargers in an unproductive cycle, and said rising standing charges may have extended operators' loss-leading periods. The report adds that the Government's independent review of the cost of public charging, led by Philip New, found the Targeted Charging Review had a severe impact on operators' costs and saw no evidence that the charges are properly cost-reflective for public EV charging.
According to the report, the Budget on 28 October committed £100 million to cutting costs at local, lower-powered chargers but did not address grid charges or the cost of rapid charging.
In comments carried by EV Powered, Tom Riley, the report's author and founder of The Fast Charge, said: "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."
Zest founder and chief executive Robin Heap 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."
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