EV Tariffs: How They Work And What You Need To Know
An energy tariff determines how much energy providers charge their customers for gas and electricity usage. There are two main types of tariffs: fixed and variable. A fixed-rate tariff locks in the cost of energy for a set period, while prices on a variable tariff fluctuate with the market. In this blog, we’ll take a closer look at how energy tariffs work, what an EV tariff is, what it means for electric car drivers, and The Electric Car Scheme’s partnership with OVO, offering drivers 6,000 free miles.
What Is An EV Energy Tariff?
Electric vehicle (EV) energy tariffs are designed to help EV owners charge their cars at home in the most cost-effective way. These tariffs offer cheaper electricity rates, measured in kilowatt-hours (kWh), at specific times of the day, particularly overnight when demand is lower.
There are two types of EV energy tariffs, each with its pros and cons:
Two-Rate Tariff
Two-rate tariffs provide two different electricity rates, with lower rates during the night. You can take advantage of the cheaper rate to charge your electric vehicle or run household appliances, such as a washing machine or dishwasher. Sometimes an energy provider may call these flexible tariffs a ‘time-of-use (TOU)’ tariff.
Add-On Tariff
Add-on tariffs allow drivers to charge their EV at a reduced rate, while all other electricity usage in the home is charged at the existing tariff rates. To benefit from this, you’ll need a compatible smart charger and an electric vehicle.
It’s important to note that most EV tariffs require a smart meter, so the supplier can accurately track your usage and bill you accordingly. Charging your EV during off-peak times helps reduce strain on the grid, which can lower the overall cost of charging your car.
Customers of The Electric Car Scheme will be able to enjoy the added benefit of 6,000 free miles through our partnership with OVO. OVO’s Charge Anytime add-on is compatible with most electric cars and home charge points. This add-on allows EV drivers to smart charge their vehicles for as little as 7p per kilowatt hour, which equates to around 2p per mile!
How Do EV Energy Tariffs Work?
If you decide to install an EV Energy Tariff as an add-on, you must make sure you’re with the energy provider you want your EV tariff to be with. For example, if you want to redeem your 6,000 free miles and you’re a customer of The Electric Car Scheme, you must make sure you’re an OVO customer. The add-on is called Charge Anytime at OVO.
Here’s what you can expect:
Connect your electric car charger with your OVO account and opt-in for smart charging,
Choose when you want to charge your car and OVO’s technology will charge your car when it’s best. You can then manage everything else in the OVO app.
OVO adds Charge Anytime credit to your bill every month. Your bill will reflect the smart charging rate of 7p per kWh.
Are EV Energy Tariffs Worth It?
Yes, an EV tariff is worth it if you charge your electric car at home and outside of peak hours, which most drivers do. Here are some more reasons why you should consider a tariff specific to charging your electric car:
Cost Savings
As mentioned earlier, EV energy tariffs can help you save money on charging your car compared to using a standard tariff or filling up a petrol or diesel vehicle. For example, OVO offers a rate of 7p per kilowatt hour, which equates to around 2p per mile!
Environmentally Friendly
EV tariffs can reduce your environmental impact by providing cheaper and greener energy.
Other Benefits…
Some EV tariffs are designed to support renewable energy by sourcing electricity directly from UK-based generation projects, helping to promote sustainable energy use while charging the battery of your electric vehicle.
Can I Get An Energy Tariff Without A Smart Charger?
To access an EV-specific energy tariff, you’ll typically need both a smart charger and a smart meter. Here’s why:
Depending on the EV tariff, a compatible smart charger may be required, as is the case with OVO’s Charge Anytime tariff.
A smart meter is also necessary because it enables your energy supplier to monitor your electricity usage and bill you accurately. You can check your eligibility for a smart meter and arrange a free installation through your energy provider.
How To Get The Most Out Of Your EV Tariff
There are some things you can do to get the most out of your tariff, such as:
Charge Your Car During Off-Peak Hours With A Smart Charger
A smart charger will automatically begin charging your car during off-peak hours (usually between midnight and 4 am), making it more cost-effective and environmentally friendly. The home charger should also allow you to schedule the charging so it happens during the low-cost hour of the night. This way your car will charge while you sleep, without putting additional strain on the infrastructure.
Drive Efficiently
Avoid sudden acceleration and braking, maintain speed limits, and limit the use of heating or air conditioning to improve energy efficiency and extend your electric vehicle’s range. Instead, you can use your heated seats and heated steering wheel which usually consumes less energy.
Use Larger Appliances At Night
Running your washing machine, dishwasher and other big household appliances during off-peak hours will help you to save money!
The Electric Car Scheme’s Partnership With OVO
As mentioned earlier, The Electric Car Scheme’s partnership with OVO provides both new and existing customers with 6,000 free miles of charging, along with access to OVO’s Charge Anytime EV tariff add-on.
The EV tariff add-on enables users with a smart meter and home EV charger to charge their EV at a special rate of 7p/kWh, which equates to around 2p per mile.
But here’s the good news: according to our analysis, if you’re driving a petrol car, you’re likely spending more on fuel than the average EV driver pays to charge their car each year - and this gap keeps growing. By around mid-July this year, the cost of running a petrol car had already exceeded what most UK electric vehicle (EV) drivers were spending on charging, based on the standard electricity rates.
If you’re paying the standard variable rate for electricity, you’ll hit that tipping point around July. With EV Charging via Charge Anytime at the rate of 7p/kWh, your charging costs would become cheaper even sooner, more like mid-February due to the significantly cheaper electricity costs.
While affordability remains the biggest barrier for people to switch to an EV (68% of respondents in The Electric Car Scheme’s Affording Sustainability report highlighting it as a concern), the cost of running an EV also remains a barrier (34% see it as a barrier).
CEO and Co-Founder of The Electric Car Scheme, Thom Groot commented:
“This partnership offers our customers nearly a year’s worth of free driving, followed by some of the most competitive charging costs available on the market. This is another step in making an EV the obvious choice for anyone looking for their next car and thinking about making the green choice.
“This partnership offers our customers nearly a year’s worth of free driving, followed by some of the most competitive charging costs available on the market. This is another step in making an EV the obvious choice for anyone looking for their next car and thinking about making the green choice.
“Over the past two years, we have successfully helped thousands of people get behind the wheel of an affordable electric car using the magic of salary sacrifice. Our schemes operate at thousands of companies across the UK, offering a level of competence, reliability and risk protection that sets us apart from the competition. We are dedicated to making it a ‘no brainer’ decision for everyone to switch to green tech, at an affordable cost.”
Alex Thwaites, Director of EV at OVO commented:
“EVs play a vital role in our collective ambition to transition to a zero-carbon energy future and we’re committed to helping make the transition for our customers as easy as possible.
“Salary sacrifice schemes are one of the most popular and cost-effective ways for drivers to make the switch to an EV and our partnership with The Electric Car Scheme means customers can access the lowest rate for their home charging.”
