New analysis from the Energy & Climate Intelligence Unit has
found that many EV drivers could soon find themselves saving the
equivalent of an extra £200 a year compared to petrol car
drivers.
Octopus Energy has recently announced it will cut its EV charging
tariff, which allows drivers to charge cheaply overnight, from 7p
per kWh before the war started, to 5.5p per kWh as of the
1st April [1] - a price that could allow an EV
to be driven for less than 1.5p per mile. By comparison, at £1.50
a litre, a petrol car typically costs 17p per mile to run.
This comes as war in the Middle East is driving up petrol prices,
with recent analysis by the ECIU finding that oil trading at $100
could see petrol rising from £1.32 per litre before the war
started, to £1.50 [2] - increasing the cost of fuelling a petrol
car from £1220 a year before the war started, to £1390.
Prior to the conflict, many EV drivers could save an average of
£850 a year from charging an EV over fuelling a petrol car.
However, an increase in the price of petrol to £1.50, and a cut
in the cost of charging to 5.5p per kWh, could see savings for EV
drivers using Octopus' Intelligent Go tariff jump to £1040 a
year.
While the price of petrol is rising, caps on the cost of
electricity in place until June this year - which were set based
on prices before the war - will shield many EV drivers from the
shocks we are currently seeing in global energy markets. The
price cap is expected to rise this summer due to rising gas
prices – but, even with higher electricity prices, EVs remain
significantly cheaper to run than petrol cars, with fuelling
costs of less than a third of those of a petrol car during the
gas crisis in 2022. [3] Furthermore, EV customers signing on to
Octopus' Intelligent Go tariff will be protected from any such
rises, since the new 5.5p per kWh rate is fixed for 12
months.
Commenting on the analysis Walker, Head of Transport at the
Energy & Climate Intelligence Unit (ECIU),
said: “With over 1.8 million EVs on the UK's roads, an
increasing number of British drivers are now much more protected
from these kind of global oil price spikes. While petrol car
drivers are facing a jump in their fuel bills, some EV drivers
could actually see their charging costs come down, increasing the
savings they were already making before the war started.
"Some industry voices are calling for the UK to slow its switch
to electric vehicles, but let's be clear - EVs powered by British
wind and solar farms help the UK cut its dependence on foreign
oil imports, and protect its drivers from volatile markets over
which we have no control. Oil is traded internationally, so
trying to squeeze more out of the North Sea has little impact on
the price paid at the pump.
“The UK is a leader amongst the world's largest car markets in
making the transition to electric cars, with its car industry
producing ever more electric vehicles. The electric Nissan Leaf
is already rolling off the production lines in Sunderland, while
production of JLR's new electric models is expected to start in
the West Midlands this year”.
Were the predictions we have seen in some quarters that oil could
hit $150 a barrel become a reality, [4] the price of petrol could
jump to £1.90 a litre. [5] Were this to happen, the cost of
fuelling a petrol car would jump to £1760 a year. This would
result in EVs costing their owners £1410 a year less to charge
their cars than fuel a petrol car, based on the new prices - £560
higher than before the conflict started.
ENDS
