It was announced this morning that the new energy price cap for England, Scotland and Wales would fall to £2,074 a year from July.
This will be a drop of £426 for homeowners but many experts have warned that the price cap could rise again, leaving people in difficult situations.
Despite the cautious optimism from industry leaders, electric vehicle owners could see a number of benefits which their petrol and diesel counterparts may not experience.
The energy regulator Ofgem announced that the standard variable tariff for domestic electricity rates would be lowered to 30p/kWh, down from the current 34p/kWh rate.
For EV drivers who are keen to reduce their charging costs, this will be seen as a welcome and needed update.
A growing number of off-peak charging tariffs are now available, allowing people to benefit from greater savings when refuelling their vehicles.
On average, a motorist in the UK covers around 6,800 miles every year, and with electric cars becoming more common, drivers can make big savings.
Charging on an off-peak tariff in a typical EV would cost just £127.50 for a year’s worth of driving with Octopus Intelligent at 7.5p/kWh.
With the new standard variable tariff rate being rolled out in July, that same annual mileage would cost £510.
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By comparison, a petrol vehicle travelling at the same rate as the average mileage would have to spend more than £1,100.
David Watson, CEO of Ohme, said: “It’s great that the Standard Variable Tariff is being lowered which will help EV drivers to reduce their charging costs.
“However, drivers can lower their bills further still by speaking to their existing electricity supplier and finding out if they offer an off-peak tariff.”
Mr Watson suggested that if drivers cannot get an off-peak tariff with their current energy provider, they should consider switching to save money.
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According to the RAC’s Charge Watch Report, it will cost an electric car driver 69.2p per kWh to charge at a rapid public charger and 74.2p at an ultra-rapid charger.
Despite this, when charging at home at the current capped rates, an electric vehicle costs just 10p per mile to run, compared to 17p per mile for petrol and 18p for diesel.
Several home EV chargers, including the popular Ohme Home Pro smart charger, can connect with the National Grid in real time.
This enables the charger to automatically adjust its charging to take advantage of low prices and times with off-peak tariffs, saving drivers even more money.
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