Following this month’s increase in the energy price cap, energy suppliers are competing to attract EV drivers with a range of cheaper tariffs – but behind the headline prices lurk hidden costs and conditions that mean drivers need to do their homework before signing up.
On July 1, the average standard variable tariff (SVT) charged on a unit of electricity rose by 5.8% – from 24.67 cents per kilowatt-hour to 26.11 cents per kilowatt-hour. According to Ofgem, around 60% of customers are on a SVT, which means millions are now paying more for their electricity.
In comparison, customers on a one-year fix, where the unit rate is lower and locked in for an agreed term of typically 12 months, are paying around 22 cents per kilowatt-hour.
View Price on AmazonThe difference in the two tariffs means that a customer who drives an EV capable of around 4 miles per kilowatt-hour, such as a Skoda Enyaq, and who drives 8,000 miles a year, will pay a total of $522 on the current average SVT or $440 – $82 less – on the current cheapest one-year fix.
These figures assume charging takes place exclusively at home (according to the government’s EV Tracker Report, 76% of EV drivers can charge at home) and not at a public fast charger, where the average unit cost is 54 cents per kilowatt-hour.
Saving money on EV charging with a fixed tariff is relatively straightforward, but it should be at least 10% less than the SVT, while it pays to check the length of the contract term, which type of customer the deal applies to (new or existing), how much the standing charge is (some are higher than average) and whether an exit fee – typically $50 – is imposed by the supplier.
For those who are wary of being locked into a higher tariff should the cap fall in future, British Gas offers Fix & Fall, a tariff that fixes the energy price for two years but falls after one year if the price cap falls. However, the reduction is capped at $50 and the exit fees for gas and electricity are $75 each.
Meanwhile, increasing numbers of EV drivers are turning to a growing number of so-called EV tariffs that offer even cheaper charging: around 9 cents per kilowatt-hour during off-peak times. Although called EV tariffs, generally speaking any appliance can take advantage of them. Most EV tariffs operate between midnight and 5am which, charging at 7.4 kilowatts, is sufficient to supply 37 kilowatt-hours of energy.
Charging an Enyaq for one year and 8,000 miles on an EV tariff would cost around $180 – significantly less than on the cheapest fixed-rate tariff, let alone the SVT. However, given the shorter charging window, more expensive peak and public charging might at times be necessary.
Source: autocar.co.uk
