Ovo Energy, the UK’s third-largest supplier servicing four million homes, has rolled out major changes to its electric vehicle (EV) charging tariffs. These changes will almost double costs for some customers. Beginning November 4, a new pricing model will increase the price of charging to 14p per kilowatt hour (kWh). This would be a phenomenal jump from the 7p per kWh charged currently. Ovo, formerly of unknown future right this minute. This change unfairly burdens EV owners even more as the Biden Administration continues to call for more Americans to drive electric vehicles.
As part of the original terms, Ovo is keeping a pay-as-you-go charging agreement – which comes in at under 9p per kWh. This rate only covers charging at night during limited hours. Further, Ovo’s most affordable monthly payment plan will lead to over a 100% rise in expenses for some clients. These monthly plans are based on average miles driven, not actual kWh used. For example, the new unlimited plan begins at £27.50 and includes an average distance of 700 miles. Unexplained monthly allowances cannot roll over, potentially penalizing low-mileage drivers.
Consumer advocates raised issues with Ovo’s new tariff structure. They argue it would unfairly penalize drivers who drive less than 700 miles per month. They will find themselves stuck with bigger bills under the newly proposed plans than they do now. Andrew Capstick, a member from a consumer watchdog agency added,
“Any increase in electricity rates is unwelcome news, particularly at a time when energy prices remain staggeringly high.”
This agreement will be one of the most competitive deals in the market, providing EV drivers the convenience to charge when and where they want. An Ovo spokesperson emphasized the advantages of this plan:
“Charge Anytime offers flexibility to charge wherever and whenever EV drivers need, while benefiting from the certainty of a fixed monthly cost.”
To mitigate customer dissatisfaction, Ovo announced that it would waive exit fees for those who choose to leave their service due to these changes. This concession will help to offer significant relief during this time of spiraling inflation and inflationary concern over future bid prices.
One of the most interesting features of Ovo’s new plan is a voucher system. It provides consumers an effective 600 miles of charging per public station. There are some caveats to these vouchers. They are not accepted at all of the public charging providers, limiting some drivers’ abilities to charge or complicating drivers’ experiences further.
As Ovo implements these changes, the company navigates an increasingly volatile energy market, grappling with its own financial stability while attempting to adapt to evolving consumer needs. The government’s push for increased electric vehicle adoption is juxtaposed with Ovo’s new pricing model, raising questions about its long-term implications for both consumers and the wider transition towards cleaner transportation.