EV electricity tariffs are confusing to customers, says Citizens Advice

The lack of clarity in regards to electricity tariffs for charging electric vehicles (EV)has come under fire by Citizens Advice, as the charity demands suppliers improve the available information.

In their own piece of research, Citizens Advice found that there was a huge variation in the price of EV electricity tariffs. They also found a range of confusing ‘extras’ such as free installation of charging points, discounts for public chargers and suchlike.

They say that this makes it difficult for consumers to compare offers and to determine the actual cost of the EV electricity tariffs on offer.

The report, named Take Charge, examines the availability of EV electricity tariffs and highlights the lack of price comparison services to help customers make informed decisions. Chief Executive, Gillian Guy, commented:

“The EV tariff market is expanding rapidly and it is crucial that consumers can make informed choices. It’s important to have genuine choice between competing tariffs. That means there needs to be transparency of costs and that suppliers properly support this growing group of consumers.”

Their research showed that the cost of the electricity tariff varied greatly depending on the energy supplier and the type of metering used. Annual costs could come in at anywhere between £811 and £1,442,they said.

Citizens Advice ran a variety of electricity tariffs through their own modelling system and found that single rate electricity tariffs could result in estimated annual costs of between £1,298and £1,442. For Economy 7, the estimated annual costs were between £811 and£938.

The EV electricity tariff market is rapidly expanding, with new suppliers launching electricity tariffs all the time. Currently around 10 suppliers offer an EV electricity tariff, compared to just two a year ago. However, few if any at all show up on price comparison services.

With the advent of smart time of use (SToU) tariffs, there is an opportunity for independent energy suppliers to offer more competitive electricity tariff prices based on charging during off-peak times. Right now, there is very little opportunity for customers to compare different electricity tariffs and prices, so it’s unclear whether a SToU tariff would be cheaper than an Economy 7 rate.

There is also some confusion around the OLEV Home Charge Scheme, which provides a grant of 75% towards the cost of installing a charge point. Some suppliers only offer home charges to those eligible for the scheme, which adds another layer of complexity to price comparison.

Public charging points have received a welcome boost this week, as all six of the UK’s distribution network operators (DNOs) have agreed to a new standardisation process for grid connection approval.

This change will massively cut down on the amount of paperwork installers are required to complete in order to supply an EV charge point. It is hoped that this will stimulate more EV connections and encourage more people to invest in electric vehicles.

Chief executive of the Energy Networks Association who represent the DNOs, David Smith, said:

‘We want to help super-charge Britain’s EV roll-out. By finding new ways to cut the amount of paperwork, we are making it easier and quicker for EV charge points to connect to the network, helping the public make the switch to cleaner, greener transportation.”

It's hoped that these changes will make it easier for installers to provide information around smart vehicle charging and its associated costs, whilst also helping network operators to provide a valuable service to the public.

Citizens Advice and other bodies are calling for similar clarity and ‘cutting of the red tape’ for home vehicle charging points too. Only then will the government's ambitions for zero-emissions vehicles be achievable.

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