EV charging price cut: Osprey will reduce its rates from a record £1 to 79p per kWh after recalculating costs since the introduction of the Government’s Energy Bill Relief Scheme
Public charging operator Osprey has offered some relief to electric car owners who use its network by slashing its rates – a month and a half after upping prices to a record £1 per kWh.
The firm hit headlines in mid-September when it said sky-rocketing wholesale energy costs had forced its hand into increasing public charging rates to three times what it costs EV owners to plug in at home on average.
This week, the British company confirmed it will reduce its rates to 79p per kWh from 1 November, having recalculated its pricing since the introduction of the Government’s Energy Bill Relief Scheme for businesses.
The new pricing means Osprey is no longer the UK’s most expensive public charging operator.
That unwanted title has now been passed to Shell, with the oil giant’s ‘Recharge’ network demanding 85p per kWh to access its fastest ultra-rapid charging devices.
Osprey announced its eye-watering increase to access any of its 300 charging devices across the country from 15 September, saying it had been put in a ‘difficult position’ as the wholesale price of electricity went into overdrive, rising by as much as 600 per cent.
It hiked its flat rate by 52 per cent from 66p per kWh to £1.
In contrast, electric owners who have a homecharger at their property are benefitting from an average electricity rate of 34p per kWh since the Energy Price Guarantee kicked it from 1 October, while those with dedicated EV tariffs are able to recharge at off-peak times for as little as 7.5p per kWh.
It means those without off-street parking and charging facilities at home who use Osprey devices will have been paying up to 13 times more this month than those with a domestic charging devices.
The company had promised to review its pricing at the end of September, though delays in being able to calculating the impact of the Government’s scheme for businesses has meant it hasn’t been able to action any cuts until now.
The charging operator hit headlines last month when it announced an increase to its public charging rates to three times what it costs EV owners to plug in at home on average
Osprey Charging CEO, Ian Johnston, told This is Money: ‘Whilst the Energy Bill Relief Scheme was announced on 21 September there has been little clarification from the government on the support mechanics, with some energy suppliers saying that customers may need to wait for their October bill before knowing the true cost they will be charged.
‘Even after getting some detail through October on the wholesale discount, energy suppliers then have to work internally, factoring in their existing contracts and future market forecasts, to calculate the updated business prices they can offer to their business customers such as Osprey.
Ian Johnston, CEO of Osprey Charging, thanked its customers for their patience having said at the end of last month that it would be revising its pricing downward
‘The Osprey team has worked tirelessly with its supplier partners to model the various scenarios to arrive at a view of where the support might end up, so we can pass on savings to customers as soon as has been possible.
‘Under the current mechanics, a business agreeing a new supply arrangement today will not receive confirmation of the level of government support until the following week, and confirmation of the eventual cost from suppliers until the next bill – leaving any business to whom electricity is a significant proportion of their cost base heavily exposed.’
While government intervention will help to lower the cost of charging an electric car for now, both the Energy Price Guarantee for household bills and the relief scheme for businesses is due to terminate in March 2023 and could see the cost of running an EV increase next year.
In his statement sent out to EV drivers, Mr Johnston added: ‘We would like to thank all of our customers for their patience during these difficult times and understand that if drivers are to make the switch to electric, they need cheap, reliable charging points all over the UK.
‘Our focus continues to be on building an EV charging infrastructure for the future that is accessible and safe for all.
‘Over the next two years we will invest over £50million expanding our nation-wide public charging network, establishing the much-needed national infrastructure that all drivers can trust and rely on.’
End of the road for free charging in Tesco car parks
While Osprey is cutting its prices, other public charging locations will be introducing them for the first time from next month.
Last week, Pod Point, which manages devices in Tesco car parks in partnership with Volkswagen, confirmed that EV drivers will no longer benefit from free charging at the supermarket.
From 1 November, electric car owners will need to pay 28p per kWh to use the slowest 7kW devices, 40p for 22kW chargers and 50p per kWh to plug into its network of rapid 50kW charging points.
The operator said it was ending free charging in the hope that ‘customers will only top up when they need to, ensuring that they make way for others once their cars are charged’.
From 1 November, EV drivers will no longer benefit from free charging at Tesco car parks. Operator Pod Point confirmed it will introduce rates to prevent customers hogging devices
Founder and CEO of dedicated electric car website Electrifying.com, Ginny Buckley, says the move will be a ‘blow to electric car owners across the country’.
However, she points out that the price to use a 7kW connector at a Tesco car park will still be less than charging at home, with the Energy Price Guarantee meaning the average household will pay 34p per kWh for electricity.
It means annual charging bills for an average family-size EV will be £615 using the cheapest Tesco devices compared to £747-a-year when using a homecharger and domestic tariff.
‘While Tesco are on the front foot with providing charging at convenient locations, we need to ensure that the right infrastructure is in place – and at the right price – so that everyone can make the switch with confidence,’ Buckley said.
‘I would also like to see energy providers introduce cheaper night tariffs at public charge points to help balance the supply grid and benefit those without access to off-street parking.’
News of fluctuating public charging costs comes as fresh data released from the Department for Transport this week outlined how far behind target the nation’s charging infrastructure is.
With 34,637 public charging points now in place across the UK, EV drivers have seen 875 additional devices installed each month between July and October.
However, if the government is to reach its target of 300,000 public charge points by 2030, the average rate of installations will need to increase to 3,015 each month – an uplift on the existing number of new devices added of 245 per cent.
But there are even greater concerns about growing disparities in availability across regions.
This is after figures show there are more charging points in London’s Westminster than in Birmingham, Liverpool and Greater Manchester combined, a fact experts have described as ‘shocking’.
