Decision to remove two-year energy price cap will hamper EV sales – survey

The government’s decision to end the two-year energy price guarantee will have a ‘detrimental impact’ on electric vehicle sales, according to a new survey.

The survey of 1,400 in-market car buyers by WhatCar? found that 30.9 per cent were looking to buy an EV, with those remaining opting for petrol, diesel or hybrid models instead. Of those not looking to purchase an electric vehicle, 24.4 per cent said that the scrapping of the two-year energy price guarantee had influenced their decision to opt for something other than an EV.

The government previously announced a £2,500 price guarantee on average annual energy bills for the next two years. However, the price cap has now only been guaranteed until April 2023, with some estimates suggesting that average energy bills could go beyond £4,300 after this point.

Steve Huntingford, editor, What Car?, said: “Our research shows the impact policies like energy price caps can have on electric vehicle uptake. Even with rising energy prices, electric cars can prove very cost efficient to run, and if the industry is to meet its 2035 target to end the sale of petrol and diesel cars, electric vehicles must remain attractive and affordable.”

The research also found that the change in the energy price guarantee was influencing those who are still looking to buy an electric car. Of the electric car buyers spoken to, 17.4 per cent said that the price cap U-turn meant that they were now looking at used EVs rather than new ones, while 14.8 per cent were now shopping for a cheaper make or model than the ones they’d looked at initially.

When the £2,500 price cap was first announced on October 1, WhatCar?’s research of 1,654 in-market buyers found that the move had pushed 20.5 per cent of electric vehicle buyers to choose an EV.