5 minute read
Energy management in a time of crisis
THIS HAS BEEN A SUMMER OF HEATWAVES to rival any on record – even the famous long hot summer of 1976, which older readers will remember!
Indeed, 2022 has been the driest year on record since 1976, and reservoirs are at critical levels after months of drought, triggering wildfires and hosepipe bans in equal measure.
Of course, no sooner are hosepipe bans enforced, the weather lurches from one extreme to the other, with torrential downpours and flash floods! Factor in possible power cuts and transport disruption, and you’ve got a perfect storm for transport disruption.
In addition, we now also appear to be trapped in a vicious cycle global pandemic, and post-pandemic crises, including the spiralling cost of living, especially fuel and energy prices.
In the background, the underlying crisis, that of our climate, has for years been simmering increasingly toward boiling point. And that affects all countries and demographics.
FUEL CRISIS VS ENERGY CRISIS
After enduring months of record-breaking price highs at the pumps, drivers of ICE Vehicles will be relieved there are finally signs that the cost of oil has stabilised.
The wholesale price of oil may have gone down, but not so you’d notice at the pumps. Fuel retailers are notorious for failing to pass on reduced wholesale costs to customers quite so eagerly as when wholesale costs escalate. So, while pump prices are predicted to fall, at the time of writing petrol was still hovering above 180p per litre, and sometimes as high as 190p.
During the fuel crisis, it may have crossed the minds of many beleaguered motorists, whether swapping fuel for electric is the answer? But, caught as we are between a fuel, and energy crisis, many may also now be wondering which way to go?
WATT’S UP?
With the increase of Ofgem’s energy cap, the Standard Variable Tariff will rise to around 60p per kWh from 28p per kWh this winter, according to industry analysts.
Given that the April increase to 28p per kW represented a 70% increase for many, for this to double come October can make going electric appear an unviable option, especially when petrol pump prices looked to have peaked.
SO, IS ELECTRIC STILL A VIABLE OPTION?
The answer is a resounding yes, but this can depend on various factors and individual circumstances. A significant difference between ICE vehicles and EVs is the distribution of energy, and the shift to a more symbiotic relationship between the two.
EVs can be recharged in a variety of locations, methods, speeds, and costs, this is a significant differentiator to ICE vehicles, that only use fuel stations, and a single, familiar experience.
EVs can be charged slowly from just a basic 13A domestic socket, up to ultra-rapid rates using DC chargers that can exceed 250 kWh. The variables of convenience, and cost are numerous. EVs can be charged at home, at work, or at public charging locations, this creates new markets, and industry forces, and will undoubtedly create new trends.
UNDERSTANDING THE ENERGY AND EV MARKETS
I recently read that due to the significant increase in electricity prices this winter, EV drivers face an eight-fold charging cost increase.
The same article could have easily been reframed in a more positive context: smart tariffs will save EV owners up to eight times on home charging this winter.
So it may be true that charging on a standard variable rate from October might mean paying 60p per kW. But if you have private parking, and are on a time-of-use (TOU) tariff, such as Octopus Energy’s Intelligent, which are set at 7.5p per kW for offpeak times between 12.30am to 4.30am, you can effectively charge at an eighth of the standard variable 60p rate – 7.5p.
Based on a typical UK average mileage (post-covid) of 6,800 miles per annum, this would cost just £127.50. Obviously a professional driver’s mileage is significantly more, but this only means savings will be even more significant.
Although the above scenario is a basic example, it does demonstrate that energy management, even on a domestic level is something valuable to understand as part of EV management.
PUBLIC RAPID CHARGING: WHEN IT PAYS TO SUBSCRIBE TO A NETWORK
Tesla opened 15 of its “super hubs” to all other EV brands in May, prior to a full roll-out of all its 189 locations in September.
Non-Teslas can access their network - at the cost of 60-62p per kW. But you can access the same price as Tesla owners, (26-28p per kW) by paying a monthly subscription of £10.99.
You can soon work out this benefits Tesla in creating a faster turnaround of users at a higher price, while subsidising Tesla owners and subscribers at the lower rate.
This also benefits those who regularly need to top up around 100 miles or more, (around 40 kW) which for on-demanddrivers, or those without private parking will be the norm.
Topping up at 40kW is the value tipping point here, because it becomes cheaper (even for one charge) to pay the £10.99 subscription, and charge for 28p per kW.
It’s important to emphasise that when it comes to EVs and charging strategies and solutions, one size does not fit all. This is not a like-for-like replacement of fuel for electricity. If you need expert advice on going electric, get in touch with us at The Connect Consultancy.
