The AA has criticised the Government for introducing car tax hikes for electric vehicle owners, including a suggestion regarding how the system could change.
It comes as electric vehicle charging costs have fallen in April, with peak time on-street slow charging dropping by 7p per kilowatt hour.
Off-peak residential rates also decreased by one penny over the same period, according to the latest AA EV Recharge Report.
The gap between maximum at-home charging costs and peak kerbside charging has narrowed to around 2p per mile less than a month ago.
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The AA has lamented the decision to begin taxing electric cars
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This improvement is partly due to domestic charging rates under the OFGEM energy price cap increasing by 2p/kWh.
Most EV drivers with home chargers can access considerably lower rates, sometimes as low as 5p/kWh for overnight charging, minimising the financial impact.
The cost of charging an electric vehicle to 80 per cent of battery capacity now comes in at just over £10, compared to more than £40 for filling 80 per cent of a fuel tank.
Despite petrol prices continuing to slowly fall during April, EV charging remains competitively priced when charging away from home.
Off-peak ultra-rapid charging is actually a penny per mile cheaper than petrol, costing 10.62p per mile compared to 11.77p per mile for petrol vehicles.
This growing cost advantage makes conversion to an electric vehicle increasingly attractive for motorists, even as other financial incentives for EV ownership have been reduced.
April also saw the introduction of Vehicle Excise Duty (VED) for electric cars, with EVs now paying the same rate as petrol and diesel vehicles, even those previously registered and paying nothing.
The Treasury’s move aims to ensure all motorists contribute to road network maintenance. However, the AA has expressed concern that matching EV tax rates to combustion engine vehicles could hamper the adoption of used electric cars.
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Jack Cousens, head of roads policy for The AA, said: “For the second month running, on-street residential charging has fallen, meaning drivers can recharge for less closer to their home. This is important for those without any dedicated off-street parking, as it allows everyone to join the move to electrification.”
“Unfortunately for EV drivers, the introduction of VED means that the days of free car tax are over.
“Harsh still, was the decision to retrospectively charge all EV owners with the same rate as those driving combustion cars.
“The AA agrees that all drivers should pay something towards road maintenance, but a fairer solution would be to offer a discounted EV rate until EVs saturated more of the UK car parc.”
Electric vehicle owners are now required to pay Vehicle Excise Duty
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The organisation has called for a discounted car tax rate for electric vehicles to help stimulate the second-hand EV market.
It also warned that removing the annual tax saving of around £200 could discourage potential buyers from switching to electric vehicles.
