EV drivers save more with new energy price cap effective in July

Man with cup of coffee in hand is waiting for the end of the charging process of his electric car

EV drivers can now charge their cars at home for even less money thanks to a revision to the energy price cap that takes effect in July.

The maximum on energy costs has been lowered by 7% (£122) to £1,568 according to new data issued by the electrical regulator, Ofgem.

As a result, charging an electric vehicle will become even more affordable. With the new cap of 22.36 pence per kilowatt hour, a full charge of the UK’s best-selling EV, the Tesla Model Y, would now only cost slightly over £13.40, down from £14.70 earlier this year.

Even though this might not seem like a big saving, drivers of electric cars will find that it adds up rather well over time. For instance, if a driver in a Tesla Model Y RWD charged at home and covered 10,000 kilometres a year, the official WLTP range (283 miles per charge) would cost them £470 in electricity costs. This is as opposed to £519 before the revised price cap was introduced, representing almost a potential £50 saving.

In terms of vehicle efficiency, the official WLTP tests typically depict the best-case situation, but they provide a helpful baseline for comparison. With a 1.3-liter petrol mild-hybrid engine rated at 44.1 mpg, the Nissan Qashqai, the best-selling family SUV in the UK, will cost owners approximately £1,537 annually if they drive 10,000 miles. That’s over £1,000 per year more spent on fuel than with the electric Tesla.

The price of fuel and diesel, which increased by more than 10p between January and the beginning of May this year, is partially to blame for this disparity. Fortunately, prices have now begun to decline. As of time of writing, the average price per litre for petrol and diesel is 148.63p and 155.01p, respectively.

Even if the UK’s network of chargepoint providers has expanded by 50% in the past year, the cost of charging in public is still significantly greater than charging at home. That said, the AA still reckons that the cost per mile for an EV – if topped-up by an ultra-rapid charger at off-peak times – is lower than that of a petrol car. Using such a charger at peak times could be just as, or potentially even more, expensive than petrol, though.

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