View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 27, 2021

UK EV owners to be offered ‘half-price’ charging tariff

UK Ovo Energy plans to launch an electric vehicle charging tariff, at half the usual price, to compete with typical off-peak rates even when electricity demand is at its highest, a media report said.

By Olly Wehring

UK Ovo Energy plans to launch an electric vehicle charging tariff, at half the usual price, to compete with typical off-peak rates even when electricity demand is at its highest, a media report said.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

According to The Guardian, the UK's second-largest energy supplier will set the tariff at a flat rate of GBP0.06p per kilowatt-hour no matter what time of day their customers choose to charge their vehicle, in direct competition with suppliers which offer cut price charging only during set hours overnight.

The supplier hopes to rival the so-called "time of use" tariffs which offer customers ultra-low rates as long as they charge when demand for electricity is low, and avoid charging when renewable energy is scarce and prices are high.

Instead Ovo's "type of use" tariff will be less than half the typical rate from rival suppliers – without limiting the times when customers can charge – by automatically charging vehicles when prices are low. When prices are high, energy could be drawn back into the grid from the batteries of electric vehicles sitting idle, the report said.

Rivals typically range between 14.3p per kilowatt-hour (KWh), offered by EDF Energy, and 19.5p/KWh offered by British Gas, according to data from Zapmap cited by the newspaper.

The Guardian said Ovo's new tariff is broadly in line with rival off-peak rates, which range from 4.5p per KWh from EDF Energy to 10.44p/KWh from E.On, but typically require cars to charge after midnight and before 7.30am.

The reports said the energy company's tech arm, Kaluza, had used algorithms to model electricity market patterns and customer behaviour to predict that it would have more than enough idle electric vehicles to help balance the energy grid even if some individual customers choose to charge or drive at these times.

Customers would be able to set when they required their vehicle to be fully charged, or override Kaluza's software to charge at short notice, without any impact to the rate they pay.

Marzia Zafar, head of strategy at Kaluza, told The Guardian its software gave electric vehicle users "the energy they need, precisely when they need it, at the lowest environmental impact, and now at a guaranteed price that saves them money".

Ovo expected customers on the new Drive Anytime tariff would be able to cut their EV charging bill by more than 60%, or GBP200 a year, without altering their behaviour.

"Electric vehicles and renewable energy are the perfect companions for a zero-carbon world, but we have got to demonstrate that they can be easier and cheaper, as well as greener," Zafar said.

"Kaluza shields customers from the complexities of the energy transition, while at the same time driving it forward," he added.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto