Ofgem price cap increase: What it means for UK EV drivers

With energy costs rising and the UK’s transition to electric vehicles accelerating, many Brits are wondering how the recent Ofgem price cap increase will impact their wallets. With the 2030 ban on petrol and diesel cars quickly approaching, this shift to EVs means rising energy prices could affect more than just household bills.

As the price cap is set to rise by 10% on October 1st, 2024, we’ve crunched the numbers and calculated what this means for drivers and how Brits can cut down on energy usage to save on costs.

What is the Ofgem price cap?

The Ofgem price cap limits how much energy companies can charge per unit of electricity for those on standard tariffs. It’s meant to protect households from high energy prices. From October 1st to December 31st, 2024, the cap will be set at £1,717 annually for typical households using both gas and electricity.

While the price cap primarily impacts household energy bills, electric vehicle owners, in particular, should be aware of how the increase will affect their car charging costs.

How will the price cap affect drivers?

Analysing the average cost per charge of a typical 60kWh battery size EV against the new price cap, we can reveal that the average cost to fully charge an electric vehicle at home will rise from £13.41 to £14.70. With around 1.2 million EVs on UK roads, and the average car using 108kWh of energy per month, this small increase will amount to an additional £2.78 million in total energy costs by UK motorists in October alone! This totals a staggering £33.36 million extra spent on car changing in UK households across a year. 

Hybrid vehicle drivers will experience a smaller, but still noticeable, price increase. The cost of charging a hybrid vehicle at home will rise from £3.13 to £3.43 per charge.

While this increase is undoubtedly significant, it’s important to note that home charging will remain much cheaper than using public charging stations. Currently, public charging points charge an average of 56p/kWh - nearly double the anticipated 24.50p/kWh rate for home charging after the price cap increase.

While the increase per charge may seem small, frequent drivers could see these costs add up, especially as winter approaches and energy consumption increases overall. To help you keep both your wallet and car full, we’ve put together some quick tips to help you reduce the cost of running an electric car.

5 tips for saving money when driving an electric car

1. Charge during off-peak hours

Many energy providers offer reduced rates during off-peak hours, typically at night. Charging during off-peak hours could save up to 30% on your bill, depending on your provider. For example, British Gas’s Economy 7 tariff offers cheaper rates after 12 a.m., while Octopus’s Go tariff reduces costs between 12:30 a.m. and 4:30 a.m. If you can, check if your provider offers these tariffs and weigh up whether it works for your household needs - if it does, you’ll save a significant amount over time.

2. Use a smart charger

Investing in a smart charger is another great way to ensure you're charging your car at the cheapest times. Using a smart charger allows you to track energy consumption and schedules the charging for you. Some smart chargers even adjust charging speed based on your energy provider’s rates - so it’s worth checking if your current provider does this.

3. Monitor your driving habits

Driving more efficiently can also reduce how often you need to charge. Avoiding harsh acceleration and braking, driving at a steady speed, and using eco-mode can all help you stretch each charge further.

Also, some satnav systems offer options for the most range-efficient route - if your satnav or maps have these options try to use them where possible. Although it may not always suggest your usual route, it could still save you valuable pounds.

4. Optimise your home’s energy efficiency

Reducing overall household energy consumption can help offset the cost of charging your EV. Simple measures like buying and using energy-efficient appliances and improving home insulation can lower your energy bills significantly.

5. Get rid of the junk in the trunk

Travel light whenever possible to avoid heavy fees. Carrying extra weight consumes more energy, which reduces your vehicle’s range more quickly. By removing excess items from the boot, roof boxes, or any unnecessary clutter will keep your car light, and will ultimately burn through less energy.

By using these hacks and keeping mindful of when and how you charge your EV, it’s possible to mitigate the impact of the upcoming Ofgem price cap increase and keep your energy bills manageable so you can save your cash and keep your car fully charged at the same time!