Octopus Energy Restricts Cut Price Electric Car Charging Costs Set to Rise for UK Drivers

Octopus Energy, the United Kingdom’s largest energy supplier, will introduce new limits on its discounted electric vehicle tariff from January, increasing the cost for thousands of motorists. Under the revised policy, users of the Intelligent Go tariff will be permitted just six hours of low-cost charging each day. Previously, this popular plan—chosen by over 260,000 drivers—enabled households to enjoy notably reduced electricity rates during EV charging, substantially cutting the total running costs for electric vehicles.

This policy shift arrives as household electricity prices continue rising and new taxes on electric vehicles take effect, putting added pressure on the government’s net zero ambitions. Those who need to charge their cars for longer journeys will be hit hardest, with energy during peak periods costing approximately four times more than the discounted rate. The company estimates that a full charge for a larger battery vehicle, such as a Tesla Model Y, will more than double in cost, increasing from £5.50 to over £13 when a full charge is required outside the discounted window.

The adjustment by Octopus Energy follows a move by competing supplier OVO, which doubled electric vehicle charging rates earlier this year. The sector has seen a rush to attract EV owners with targeted tariffs, offering significantly lower off-peak electricity rates than conventional petrol refuelling or public charging points. Now, facing rising wholesale costs and growing demand, providers are tightening conditions, sparking customer backlash on social media as drivers question the ongoing value of these tariffs.

Electric vehicle owners in the UK are also contending with reduced road tax exemptions and additional duties on high-value cars. The government’s latest budget introduced a road charging scheme from 2028, expected to add an average of £255 per year in mileage fees. Analysts warn these moves could curb sales growth for electric vehicles, with official projections indicating up to 440,000 fewer sales over the next five years as a result.

Octopus Energy insists the revised terms will allow the tariff to offer sustainable value for all users, highlighting that four in five charging sessions currently fall within the new six-hour limit. The company aims to encourage more frequent, shorter charging sessions, which may help in managing overall energy demand. Some customers, however, have exploited technical workarounds to extend low-rate charging, benefitting their entire household’s electricity costs beyond the original intent of the scheme.

The escalating costs and regulatory changes facing electric vehicle ownership in Britain are set to impact consumer decisions and the pace of electrification. As the financial advantages of EVs narrow, the industry and government face renewed scrutiny over the path to net zero and how to maintain both affordability and sustainability for motorists.