Ovo pricing change could double charging costs for some EV owners

Electric vehicle owners fear they will be left out of pocket after the energy supplier Ovo announced changes to a popular charging deal which could double the cost for some customers. Drivers who have an energy contract with the company can currently charge their vehicles at any time of day or night for 7p a kilowatt hour (kWh), making its Charge Anytime deal the cheapest on the market. From 4 November, however, the cost will soar to 14p a kWh unless they sign up to a new monthly plan, priced from £27.50 for an estimated 700-mile range. The plan also includes a voucher worth about 600 miles for use at public chargers. Ovo says the changes are a “new, easy way of paying”, but customers who drive fewer than 700 miles a month claim they will be left with larger bills. The monthly allowance cannot be carried over and the vouchers are not valid for all public charging providers. To qualify for the deal, drivers must be an Ovo customer, have a compatible EV charger and a smart meter. EV owner Chris Goddard was informed of the changes a week after switching his energy supply to Ovo to make use of the Charge Anytime deal. “It’s an insult,” he said. “One of the things that persuaded me to buy an electric car last month was Ovo’s charging rates. The cheapest monthly payment plan will work out at more than a 100% rise for some.” Customers on Ovo’s forum said the company had “lost the plot” and accused it of misleading them with an email announcing “a great opportunity”. The monthly plans are priced according to average miles rather than kilowatt hours, unlike the current tariff, making it difficult for drivers to compare the costs. A range of energy providers offer pay-as-you-go charging deals for less than 9p a kWh, but the cheap rate only applies to night charging during specified hours. Consumer campaigners are concerned the new tariff will disadvantage drivers with low monthly mileage at a time when the government is seeking to encourage more households to shift to electric vehicles. “Any increase in electricity rates is unwelcome news, particularly at a time when energy prices remain staggeringly high,” said Andrew Capstick, utilities editor at MoneySavingExpert.com. “Ovo’s Charge Anytime tariff was one of only a very few that let you charge your vehicle for cheap at home at any time of the day.” The charges come as the company, which supplies 4m homes, faces an uncertain future. Its latest accounts reveal that it has failed to meet the financial resilience standards set by the regulator Ofgem and is being forced to recapitalise. Ovo denied that financial constraints had prompted the tariff change. It said they were in response to customer requests for a simplified payment system. “Charge Anytime offers flexibility to charge wherever and whenever EV drivers need, while benefiting from the certainty of a fixed monthly cost,” a spokesperson said. “We know it won’t suit everyone, so we’re waiving exit fees for customers who wish to leave.”