Jacob Rees-Mogg meets with electric car campaigner
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They have predicted a high number of electric cars could reduce costs for all bill payers, including non EV owners. They said EV’s will allow the electricity network to work better which would then reduce average costs.
Ofgem said: “The rapid uptake of electric vehicles (EVs) will be the most significant change in our energy sector over the next 10 years.
“We believe that high numbers of EVs on the system could reduce total costs of energy for everyone, even non EV owners, particularly if [it] is the norm that EVs charge in ‘off-peak’ hours, using smart charging.
“EV owners are expected to benefit from cheaper running costs of EVs compared to petrol or diesel vehicles, but non-EV owners will also benefit.
“This is because EVs will enable a better utilisation of the electricity network and generation assets, thereby reducing unit costs.”
Ofgem said the market was currently trying to introduce products and services tailored specifically towards electric car owners.
These EV tariffs offer cheaper rates overnight to encourage owners to charge their car at off-peak periods.
However, they said energy supply was increasingly being bundled in with electric car services.
They are confident that as EV numbers rise, the amount of special EV tariffs available on the market will grow.
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This will make people more accustomed to smart charing their vehicles at off-peak times.
Eventually, this approach could be moved to other areas of electricity supply to ensure bill payers costs are reduced.
In a 2020 Ofgem Consumer Survey, those who own electric vehicles are “more open” to embracing changes in how they use their energy.
Two-thirds of EV owners would consider smart charging their car to avoid times when electricity was more expensive.
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