Brits across the nation have been warned of ‘significant’ costs impacting EV drivers who charge their vehicles at home – following Ofgem’s upcoming energy price cap hike
Millions of households will be stung once again by rising energy bills – especially for certain drivers. From April, Ofgem’s energy price cap will rise from £1,738 to £1,849 for the average dual fuel household paying by direct debit, a staggering increase of £111 a year.
Contrary to popular belief, Ofgem’s price cap does not put a limit on how much you can pay for energy. Instead, it sets the maximum unit price you can be charged for gas and electricity, as well as the maximum daily standing charge, which is a fixed fee that you pay to be connected to the grid. This means you’ll be charged more even if you’re using the same amount of gas and electricity as before.
This will be a huge blow to Brits who drive Electrical Vehicles (EVs) and charge their car on their own driveway. According to Carmoola CEO Aidan Rushby, EV owners nationwide should brace for a ‘significant’ hit to their bank balance.
The car finance and loan company says the price to fully charge an EV at home is currently £14.91, based on a 60kWh. However, following the price cap hike, this is slated to rise to £16.21 – a £1.30 increase. Further price cap increases will consequently push the cost of charging the eco-friendly vehicles, which will soon also be stung by new vehicle tax rules.
“Ofgem’s price cap adjustments affect households across the UK, and while warmer months are ahead and that will help with the costs of heating and lighting homes, rising energy costs will continue to drive up monthly bills for electric vehicle (EV) owners,” Aidan said, per Birmingham Live. “With Ofgem announcing a 6.4 per cent increase in the next price cap, EV drivers nationwide can expect a significant rise in their energy bills. This number is likely to grow. With the 2030 ban on new petrol and diesel car sales approaching and more EVs hitting UK roads, drivers will be hoping for energy price relief to make charging their vehicles more affordable.”
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The pro recommends exploring whether your energy provider offers ‘off-peak tariffs’. This is where customers are charged a ‘peak price’ for electricity used during the day and a cheaper rate for more unsociable hours like nighttime.
“Specially designed electric vehicle (EV) energy tariffs, for those with an EV and a home charger, allow households to take advantage of cheaper off-peak rates to charge their vehicle, when there’s less demand on the grid,” explains Martin Lewis’ MSE. “With some of these tariffs, you can also take advantage of the off-peak rate for your other electricity use too.” However, if you use lots of energy during the day (due to working from home, doing laundry, cooking etc) it could actually work out more expensive altogether.
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