Understanding the real cost of charging Electric Vehicles

9th February 2022
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How much does it cost to charge an EV in the UK

There’s a wealth of data available around electric vehicles, and finding the right information to help you on your journey towards transitioning to an EV fleet can really start your business off on the right path. Understanding your options now could help your choices in the future. 

As decision-makers and drivers alike ask how much it costs to charge an electric car in the UK, the answer can vary depending on where, and how, vehicles are charged. 

In the same way that one petrol station’s price may differ from another, a driver’s costs to charge an electric car at home will likely be very different from public or workplace charging due to differing tariffs. 

Charging at home vs diesel 

Home energy prices are increasing by 54% in April 2022 due to the energy price cap, and as a result, the estimated average pence per kWh will increase from 18p to 28p. But what does this mean in ‘real term’ costs? 

The main thing to bear in mind is that electricity is still cheaper than diesel and petrol. Based on an average annual mileage of 20,000 the pence per mile for charging at home is equivalent to 9.3p, whereas diesel comes in much higher at 15.8p. 

The time of day drivers charge can also impact the cost. If a driver is charging at home in the middle of the day and is on a smart off-peak tariff, the cost will be significantly higher than if they were to charge in the evening, when their tariff rate will drop significantly. 

Workplace and public charging Vs diesel 

The benefits of home charging are clear, but what about at the workplace? You’ll be happy to hear that Workplace charging can work out at under half the cost of diesel, averaging out at 7.3p per mile compared to 15.8p for diesel. 

Public charging also comes out on top at an estimated 15p per mile, and once you consider the reduced carbon emissions, the pros really do begin to stack up nicely. 

One thing to consider is the Advisory Electricity Rate (AER) which currently advises businesses can reimburse drivers at 5p per mile. This flat rate is not fit for purpose and could leave drivers out of pocket annually by as much as £467 for workplace charging, £869 for home charging, and a whopping £2000 for public charging! 

AER shortfull

How are these costs managed by businesses with company cars? 

Hopefully, we’ve painted a clear picture of estimated costs at home, public and the workplace, but the reality is the differences in tariff rate from person to person can differ massively, and the only way to ensure drivers charging costs are paid for accurately, is to have a solution like ours. 

At Mina, we pay drivers’ energy suppliers directly for the cost of charging their EV at home. We monitor tariff rates so if a driver switches suppliers or their tariff rate increases, we’re always paying the accurate amount, ensuring drivers are never out of pocket.

For charging at work and in public, drivers don’t pay a thing. Instead, accurate costs are captured on the single monthly fleet invoice, which also removes any concerns over the AER shortfalls. 

Get in touch to learn more about the Mina Solution, or book a call with our friendly team to chat about your future EV plans here.