Cost of running an EV could cost more than petrol vehicles

A new survey by the AA has revealed that slow electric vehicle (EV)chargers could actually cost you more.

In fact, it can be the most expensive way of fuelling a plug-in vehicle due to peak rates being introduced.

Time out

In the groups second ‘AA EV Recharge Report’ (December), it acknowledges that slow charging rates have dropped by 17p/kWh compared to November. However, some providers have changed their business model by introducing peak and off-peak rates to help manage demand.

Th introduction of separate rates for different times of the day, the report urges owners to check the charges carefully. In some cases they will find they are being charged peak rates that can be more expensive than ultra-rapid charging.

Another consideration of importance is that operators run their peak times differently. You will need to check prices and times accordingly before plugging in if you want to avoid a potential shock.

Home and away

Jack Cousens, head of roads policy and recharging for the AA, says the move “mirrors many domestic energy providers’ offering to EV owners”.

“We completely understand why this has been introduced as it allows the supply of electricity to remain constant throughout the day while ensuring drivers don’t overstay their welcome.

“However the price gap between the two is staggering, so much like refilling a petrol or diesel car, drivers should check the rates they could be paying before plugging in.”

Rapid rises

Separate research from Mina across more than 60,000 charging events showed that the average price of home electricity for EVs stayed level during September at 26p. It then rose to 30p in October, and 31p in November.

A continued fall in the pump price of petrol now places the running costs around 14.45p/mile. This means that a petrol combustion engine vehicle can be cheaper to run per mile than an EV. This is the case when EV owners exclusively use the fastest types of chargers.

However, most EV drivers will only use rapid and ultra-rapid chargers on longer journeys or as a quick top up. It means that EV driving remains cheaper on the whole.

Mina research also shows that home is by far the main source of electricity for most drivers (92%).

Cousens believes  that “while pump prices are falling, electricity prices are going in the other direction, but we are hopeful prices could tail off later this year”.

“The Government must keep an eye on prices and act if necessary”, adding that “they shouldn’t be afraid to step in if prices escalate.”

Three EV charge point operators (CPOs) have raised the cost of charging at peak times, due to high wholesale electricity costs, according to Cornwall Insight.

GeniePoint, Ubitricity and Char.gy have all joined Tesla in deploying dynamic pricing across their public networks. It offers drivers lower rates for charging at off-peak hours, and higher prices during times of peak demand.

AA EV Recharge Report – December 2022