The simple trick that could save EV drivers hundreds on their charging costs

• EV drivers could save over £400 a year by switching to a dedicated EV tariff
• Latest quarterly index from Andersen reveals EV tariffs are now as cheap as 6.7p p/kWh
• Petrol and diesel drivers could save up to £1,200 by switching to an electric vehicle 

Drivers of electric vehicles (EVs) could save over £400 a year by switching to a dedicated EV tariff, according to the latest quarterly index from Andersen.

The latest Andersen Index highlights the growing number of providers now offering dedicated EV rates to its customers, but also shows a growing price disparity among the available tariffs.

A number of energy providers now offer dedicated EV tariffs for as little as 6.7p p/kWh, meaning EV drivers can now make a simple switch that can help them save over £400 a year.

As of 1 October, the standard** rate electricity tariff was 24.5p/kWh – over three times higher than the average*** dedicated EV tariff – meaning that some EV owners could be paying £452.64 a year more on electricity than they need to.

These figures come from the Q4 Andersen Index, which monitors changes to domestic energy tariffs, helping drivers understand the different options available to them and highlighting the financial benefits that come with making the switch to an EV.

For example, through Andersen’s integration with OVO’s Charge Anytime tariff, EV drivers could go from paying 24.5p p/kWh to paying just 7p. EV drivers can switch tariffs and start saving hundreds of pounds a year by completing a simple form online.

These savings are amplified when compared to the cost of running a petrol and diesel vehicle. Drivers of electric vehicles who charge at home on a dedicated EV tariff will spend nearly £1,200 less per year on electricity than the driver of a petrol-engine vehicle would spend on fuel, despite petrol prices falling to their lowest since August 2021*.

Petrol car drivers could now be paying £98.82 more on fuel each month, or £1,185.84 more a year, than an EV driver on an EV tariff would pay for electricity.

David Martell, CEO of Andersen said, “In Q3, nine domestic electricity providers were offering smart EV-specific tariffs, with a variation of around 2.5p/kWh between them. While it is positive to see that list expand to 12 providers in Q4, we would urge EV drivers to check the rate they are being offered.

“As with everything in life, prices can vary markedly and our latest Index has highlighted the largest price range yet, with p/kWh rates from 13.77p to just 5p. It may only be a few pence, but small variations can make a huge difference in the long run.

He adds, “Despite many stories to the contrary, it is clear that adopting an EV lifestyle is better for your wallet than running a petrol car. Recharging an EV is always going to be cheaper than refuelling an internal combustion engine car, and those EV drivers who charge at home using dedicated low-rate tariffs can benefit from the most significant savings.”

* Based on RAC Fuel Watch data: https://www.rac.co.uk/drive/advice/fuel-watch/

** Based on Electricity unit prices from OFGEM - https://www.ofgem.gov.uk/energy-price-cap

 *** Based on the average calculated from all providers of dedicated EV tariffs