Electric vehicle owners could save as much as $1,800 a year on electricity costs by switching to a dedicated EV energy plan, according to new analysis from Compare the Market, although the savings vary widely depending on the retailer and household charging habits.
The comparison comes as demand for electric vehicles continues to grow, with EV sales rising 157 per cent year on year in April. The research examined plans from nine electricity retailers and found that households using around 15kWh of electricity a day, while charging an electric vehicle with an additional 20kWh daily, could reduce their annual energy costs by between $180 and $1,800 on the most competitive offers.
Many EV energy plans provide electricity at heavily discounted rates during off-peak periods, often overnight, while some include free electricity windows designed to encourage charging when demand on the grid is lower. Those cheaper periods can also be used to run household appliances such as washing machines and dishwashers.
The research found, however, that lower charging rates do not always translate into lower overall bills. Several retailers charge higher daily supply fees or higher standard electricity rates on their EV plans compared with their regular residential offers. Only three of the nine retailers analysed offered the same standard rates across both plan types.
Under the assumptions used in the analysis, Origin’s EV offer produced the largest annual saving at around $1,860, followed closely by AGL at approximately $1,750. At the other end of the scale, Red Energy’s EV plan was estimated to cost around $319 more per year than its standard plan because of higher charges outside its free weekend charging period.
Compare the Market Economic Director David Koch said dedicated EV plans could deliver worthwhile savings, but consumers should compare the full cost of a plan rather than focusing on promotional charging rates.
“The fuel crisis has sparked strong interest in plug-in hybrids and full electric vehicles, which is a great opportunity to switch to an EV energy plan,” Mr Koch said.
“However, not all offers are identical. Some retailers are charging higher rates on EV plans than their standard offerings, which reduces the savings available.
“It generally works out to be cheaper on an EV plan, but there’s a wide difference in how much you could save between retailers. If you aren’t driving as far and don’t need to charge as much every day, those savings will vary.”
He also encouraged consumers to review their electricity plans ahead of changes to regulated standing offer prices from 1 July.
The findings are based on a Brisbane household consuming 15kWh of electricity each day, alongside 20kWh of daily EV charging using a higher-powered wall charger capable of taking advantage of discounted charging periods. Actual savings will depend on electricity usage, charging patterns, location and the rates offered by individual retailers.
Consumer advocates have long encouraged households to compare electricity plans regularly, particularly as retailers introduce new products and promotional offers. While EV-specific plans may reduce charging costs for many drivers, comparing supply charges, standard usage rates and charging conditions remains essential before switching.
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