Energy bill hikes act as major barrier for electric car adoption - 'Making people think twice'
WATCH: GB News discusses the latest Ofgem energy prices
GB NEWS
Rising energy costs have become a huge deterrent for motorists who are now less likely to switch away from petrol and diesel cars in favour of electric vehicles, new data has found.
It comes after a report revealed that nearly a third of UK drivers, approximately 14 million motorists, would not consider purchasing an electric vehicle unless their annual energy bills fall by at least £100.
The findings follow Ofgem's latest price cap adjustment which saw energy prices increase by 1.2 per cent across the UK in January.
The report revealed that British households would need to see an average reduction of £158.83 in their energy bills before considering the switch to electric vehicles.
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Drivers would only consider making the switch to electric if energy bills were cut significantly
PA/GETTYSome drivers are demanding even steeper reductions, with seven per cent stating they would only consider an electric vehicle if their energy bills dropped by £500 or more annually.
A typical UK household currently pays £1,738 per year for gas and electricity, according to Ofgem's latest figures. However, the current rates still mark a 10 per cent decrease from the same period last year, when households were paying £1,928 annually.
The last time energy bills were £100 lower than current rates was in March 2022, when prices stood at £1,638 before jumping to £1,971.
Under the current price cap, households pay an average of 24.86 pence per kilowatt hour for electricity, with a daily standing charge of 60.97 pence.
Gas rates are set at 6.34 pence per kilowatt hour, with a daily standing charge of 31.65 pence.Despite concerns over rising energy costs, one in five drivers remain committed to considering electric vehicles, even if electricity prices stay at current levels.
However, 22 per cent of drivers stated they would never consider switching to an electric vehicle, regardless of energy costs.
The findings come as the cost of charging electric vehicles at home saw a significant increase, with experts calculating an additional £32million in charging costs for January.
Younger drivers aged between 25 and 34 showed the most openness to adopting EVs despite higher energy costs, with only 10 per cent ruling out a switch entirely.
In contrast, a third of drivers aged 55 and above stated they would never consider an electric vehicle, according to the report.
Aidan Rushby, founder and CEO of Carmoola, said: "Rising energy costs are clearly making people think twice about switching to electric vehicles.
"While EVs remain cheaper to charge at home than at public stations, energy price hikes are eating into these savings."
He warned with the 2035 ban on new petrol and diesel cars looming, the Government and energy regulators "need to ensure that the mass adoption of EVs is supported" and that transparency and affordability remain key to encouraging the shift toward greener transport options.
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Energy prices increased by 1.2 per cent in January
PARushby added: "To save money, we'd suggest that EV drivers aim to charge their cars at home whenever possible and explore whether their energy providers offer off-peak tariffs to help reduce charging costs by topping up at these cheaper times."
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