New Ovo EV Tariff will save users £200 a year
At the end of January, Ovo Energy announced a new electric vehicle (EV) tariff that could cut the cost of charging an electric car by up to 63%, saving users up to £200 on fuel over the course of a year. It will also make EV charging greener. OVO Drive Anytime comes with some exciting innovations on standard EV tariffs, which you can find out more about below.
How does the new OVO EV tariff work?
The new OVO EV tariff, OVO Drive Anytime, works by offering a flat fee of 6p per kWh at any time of day for electric vehicle charging. This is different to standard EV tariffs, which are usually time-of-use tariffs and force users to plug in at night in order to get a decent rate.
What is a time of use tariff? A time-of-use tariff, also known as an Economy 7 or Economy 10 tariff, is one in which the customer is charged two separate rates - one during the day and another, usually cheaper, during the night. The daily rate is often much more expensive in order to make up for the nighttime savings.
The problem with a time-of-use tariff, which is what standard EV tariffs generally are, is that if you want to charge your vehicle outside of the discounted nighttime hours, you’ll be charged more. In the first two weeks of 2021, Ovo says, some customers were being charged as much as 35p per kWh for electricity during the day.
OVO Drive Anytime is different because it charges a flat rate for EV charging that guarantees a low rate throughout the day, meaning less awkwardness about when users can charge their vehicle as well as savings. Ovo calls this a type of use tariff because it varies based on what you’re using rather than on when you’re using it.
But just how does Ovo guarantee a low, flat rate throughout the day and still make money? Let’s find out.
Kaluza AI technology makes it cheaper & greener
The new OVO EV tariff is backed up by artificial intelligence (AI) technology from the provider’s intelligent energy partners Kaluza. Kaluza software uses live data on energy pricing, the weather and localised information on energy constraints to shift charging automatically away from peak times.
This AI feature will ensure not only that the energy you’re using is the cheapest available but also the greenest available, as the technology will also prioritise capturing renewable electricity as it’s produced. Head of Strategy and Policy at Kaluza Marzia Zafar had the following to say about the tariff:
Electric vehicles and renewable energy are the perfect companions for a zero-carbon world, but we have got to demonstrate that they can be easier and cheaper, as well as greener. Our intelligent software is designed to give EV users the energy they need, precisely when they need it, at the lowest environmental impact, and now at a guaranteed price that saves them money.”
Speaking about the partnership with Kaluza, Jessica Tan, Managing Director of Ovo Smart Home, described it as “a pioneering proposition.” Above all, she is excited about the technology’s ability to rid customers of the hassle associated with being environmentally friendly at a reasonable price:
No more worrying about high energy peak prices or when to plug and unplug, Kaluza’s technology does all the hard work and is good for the planet.”
It’s certainly an exciting development in EV tariffs and we expect other providers to look at emulating it and moving away from the time of use tariff if it succeeds.