The energy price cap set by Ofgem will increase by 13% on Wednesday 1 July, raising the average annual gas and electricity bill by £221 to £1,862. However, households with driveways are being urged to save up to £1,100 a year by switching to smart electric vehicle (EV) tariffs.
New Energy Price Cap Rates
The cap determines maximum energy rates for homes on standard tariffs. For direct debit customers, electricity charges will rise from 24.67p to 26.11p per kilowatt hour (kWh), while gas charges will increase from 5.74p to 7.33p per kWh. This reflects the spike in global energy market prices caused by the war on Iran, according to Ofgem.
Impact on EV Drivers
Data from electric vehicle charging company Ohme shows that an average driver travelling 6,800 miles per year on the standard variable tariff of 26.11p/kWh will spend £443.87 annually on charging. In comparison, the same mileage using unleaded petrol at £1.58 per litre would cost £1,218.90. By using an Ohme home charger with a smart tariff like Intelligent Octopus Go, drivers pay just 8p/kWh, totalling £136 per year – a saving of £1,082.90 or £90 per month.
David Watson, CEO of Ohme, said: "This latest rise in the standard tariff should be a great incentive for EV drivers to look at switching to one of the many smart tariffs available to reduce their running costs. The most affordable place for an EV driver to charge will always be at home and switching to a smart tariff with Ohme will help them to save more at a time when the pressures on the cost of living are growing."
How to Avoid Higher Charges
Households without smart meters should submit up-to-date meter readings before or on Wednesday 1 July to ensure their June usage is not charged at the new, higher rates. Ben Gallizzi, energy expert at price comparison website Uswitch, said: "Customers who don't have a smart meter should submit their readings before or on Wednesday 1 July, so their supplier has an accurate view of their account." He added that people on standard tariffs should look for a cheaper deal, noting: "Although the price cap is going up, your bills don't have to. There are currently 27 fixed deals available that are cheaper than July's price cap."
For those seeking fixed rates, Uswitch's best buy table is topped by Outfox Energy at £1,577 per year for the average household, 15% below the July price cap.
