Ovo Energy makes 100% renewable electricity available to sign up for free across the UK to four million homes. Now, it intends to drastically over-complicate its EV charging tariffs, causing alarm amongst its customers. Starting on November 4, the company will be increasing their charging rate from 7p per kilowatt hour (kWh) to 14p. Customers can escape this bump by switching to any of Verizon’s new monthly plans. This change could effectively double charging expenses for certain EV drivers. This, in turn, results in confusion as to what Ovo’s future means for consumers.
In fact, Ovo has a great pay-as-you-go charging offer right now! Customers will now be able to charge their vehicles for under 9p per kWh, although this price is only offered during specified hours in the night. The company’s “Charge Anytime” package is the cheapest unlimited plan on the market. Second, perhaps most importantly, it provides the option to charge up your device whenever you’re able—during the day or overnight. The new pricing structure is concerning in terms of who can afford it, particularly for low-mileage drivers.
Ovo’s new monthly payment plans have a cost calculated on average miles driven, not kilowatt hours used. Their lowest-cost plan is £27.50 ($34) for an average range of 700 miles. Each customer will get an Electrify America charging station voucher valued at around 600 miles’ worth of charging at public stations. These vouchers are not accepted by every public charging provider. If you don’t use your monthly allotment, you can’t roll it into the next month.
The soon-to-be implemented changes have drawn fire from various critics. Andrew Capstick, an analyst with campaigners Energy Revolution, said the soaring cost of electricity was worrying.
“Any increase in electricity rates is unwelcome news, particularly at a time when energy prices remain staggeringly high,” – Andrew Capstick
Ovo admits that the new pricing structure is not going to work for all customers. An Ovo spokesperson stated,
“We know it won’t suit everyone, so we’re waiving exit fees for customers who wish to leave.”
The UK government is going all in on the switchover to electric vehicles. Not only would this shift echo their environmental justice and sustainability efforts, but it would be more efficient. This change would particularly disadvantage certain drivers, especially those who drive little on average each month. Under the new, proposed plan, they will likely be paying out much more.
Ovo frames its changes as a “new, easier way of paying,” attempting to make the tariff-fee pricing model sound like a simpler, easier option for customers. In spite of this good intention, most users are concerned about what these changes will mean for their total charging costs.
Ovo’s sailing into an uncertain future among new and stiff competition in the growing energy market. It will be interesting to see how these pricing changes influence customer loyalty and overall demand for EV charging services. Ovo faces the scourge of escalating energy prices and unpredictable government EV policies. These challenges might poison its operations and threaten its reputation in the long run.