Being smart about powering electric cars
Electric car owners need to be savvy about when they “fill up” their vehicles to avoid being hit with big energy bills.
With more people than ever looking to buy an electric vehicle (EV) energy experts say drivers need to be smart about who supplies their electricity and where and when they charge the vehicle.
While cost per mile of fuel for an EV is much lower than diesel or petrol the amount a driver will save will depend on their home energy deal.
Charging an electric vehicle at home overnight typically increases annual household usage by 2,000 kWh^ per year, which could add £330 to the average energy bill. Switching to a better deal could offset this impact, but when looking at ‘EV tariffs’ it’s important to check the small print.
Mark Gutteridge, energy industry specialist and Chief Executive of auto-energy switching site Flipper said "Traditionally all motorists know where they can get the best fuel prices, they go to a local supermarket and avoid the motorway services if they can.
“The same thing applies when you buy an electric car” he continued. “You want the best fuel price to minimise your running costs and that means switching to the right energy tariff and charging at home. But finding the best deal as an EV owner is more complicated than you think”.
Said Gutteridge: “There are now a number of specialist Electric Vehicle tariffs available. These have multiple rates, which mean your electricity is cheaper overnight when your vehicle is charging.
“To be charged different rates at different times you’ll need to have a smart meter fitted along with your charging point if you don’t already have one.
“Also, the number of hours you get on the cheaper rate varies massively by tariff and while the ‘off peak’ rate will be cheap, the standard or peak rate is likely to be higher than you would normally pay.”
Cost of a kWh of electricity:
EV Tariff, Off Peak: £0.05 - £0.10
EV Tariff Peak: £0.15 - £0.20
Best Non EV Tariff: £0.14
Standard Variable Tariff: £0.18
Public Charger: £0.25
As a guide, a typical household uses 3,100kWh of electricity per year. If you have an EV and charge it at home this is likely to rise to 4,900kWh per year, of which 2,000kWh will be used off peak.
“An electric vehicle tariff will definitely save you money compared to a standard variable tariff, but the majority are not much cheaper than being on a great value non-electric car tariff for ‘expected’ usage.
“And if you end up using more electricity during peak hours or charge your car less you could very well be better off not being on a specialist tariff at all.”
Flipper, who search the energy market to find their members a better deal and manage the switching process for them, also advise against signing up to an energy tariff offered to electric car buyers by manufacturers when they buy a vehicle.
Said Mark Gutteridge: “While these manufacturer-supplier deals seem like an easy option, they may not be the best value. It’s not mandatory that you also sign up to a new energy deal when you buy an EV, so if you get a hard sell in the dealership make sure you know the facts and are aware of the options.
“Many EV tariffs include other benefits such as ‘free‘ miles, or discounts on home charger installation. While these things can sound great you need to be sure they are actually relevant to you.
Mark says it is best to wait for a few months before searching for a new tariff to gain some actual usage figures as very few people actually have ‘typical’ consumption.
“Rather than jump on to the first tariff they’re offered, buyers should spend a few months seeing how they are using and charging their vehicle and then use their actual consumption data to find the best deal for them.
“Just make sure you are on a good value ‘normal’ tariff and not on a standard variable one while you are doing this.”
People can register for free with Flipper at www.flipper.community. The annual fee is only charged when savings of £50 a year or more are made on energy bills.
