The energy price cap is set to increase in April 2022, with UK homes potentially facing a 54% rise in their energy bills. This could affect you if you drive an electric car and regularly charge it up at home. Read on for all you need to know.
What is the energy price cap?
The energy price cap was introduced in 2019 to stop UK households from being overcharged for their gas and electricity. The cap is due to go up from April 2022 due to an increase in the wholesale cost of fossil fuels.
This means some households could face a 54% increase in the cost of energy, which equates to around £700 per year according to Ofgem. It’s worth noting that the price cap is a limit on the amount you pay for each unit of energy; it isn’t a cap on your total bill. This means the more you use, the more you’ll pay.
What does this mean for electric car owners?
The price cap on electricity will go up from £0.21 to £0.28 per kWh in April 2022. This means it will cost more to charge your electric car.
For context, a standard Nissan Leaf has a 40kWh battery, meaning currently it will cost you up to £8.40 to charge it from 0% to 100%. Under the new price cap however, the same charge could cost up to £11.20.
Depending on the amount of miles you drive and the model of car you own, this could mean an increase of £16 per month or almost £200 per year to charge your car. Despite this price rise, the cost of running an EV will still be considerably less than an equivalent petrol car.
What can I do to bring costs down?
There’s no easy way around these price rises, however it’s worth noting that the price cap is the maximum amount you’ll pay for your energy so it’s worth shopping around to find the best deals for your energy provider.
It can also help to charge your car overnight when electricity rates tend to be cheaper. Some energy providers offer packages specifically for EV owners, which offer you cheaper rates at off peak times. However, in light of the price cap rise, most providers are dropping these schemes and those that do still offer them have increased the price.
What about PHEV owners?
Plug-in hybrids (PHEVs) will also be affected by the rise in energy prices if you choose to charge them up at home.
These cars won’t cost you as much per charge because they tend to have smaller batteries than fully electric cars, however they have a much shorter range and will therefore need plugging in more often.
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