While more than one in four (27%) say rising electricity costs have already reached the point where they would rule one out altogether, according to new research from Ireland’s most trusted motoring marketplace, Carzone.
A further 20% say another increase of up to 10% in electricity prices would be enough to make them rule out an EV, while 10% say it would take an increase of between 11% and 20%.
The findings come following a series of electricity price increases announced by Irish energy providers in recent weeks. Bord Gáis Energy and SSE Airtricity will increase typical electricity bills by 8.8% and 8.9% respectively in October, while Energia has announced an average increase of 4.73%. Some EV-specific Energia charging rates will increase by considerably more.
But while electricity prices are putting pressure on the case for going electric, rising prices at the pumps are pushing motorists in the opposite direction.
Carzone’s research found that 42% of motorists are now much more likely to consider an EV because of recent increases in petrol and diesel prices, while a further 14% say they are somewhat more likely.
The findings reveal a growing tension between the pump and the plug, as motorists weigh up the running costs of their next car while both household electricity and fuel prices rise.
MORE THAN HALF ALREADY CONSIDERING ELECTRIC
Appetite for electric cars was already significant before the latest electricity price announcements. More than half (54%) of motorists surveyed said they were considering an EV for their next car, including 29% who were seriously considering making the switch.
The research comes as motorists continue to face higher costs at the pumps, with petrol averaging €1.87 per litre in September and diesel €1.94 per litre. Petrol prices were 9% higher year-on-year in August, while diesel prices had risen by 15%.
It also follows strong uptake of the Government’s ICE2EV Pilot Scrappage Scheme. The scheme, which offered eligible motorists a €5,000 scrappage incentive alongside the existing EV grant, reached its target of 2,000 applications and has now closed to new applicants. The existing grant of up to €3,500 for qualifying new EVs remains available.
Conor Faughnan, Carzone’s independent motoring expert, said, “For anyone weighing up the options, it’s important to look at the full cost of ownership rather than any one price increase in isolation. Purchase price, how and where you’ll charge, annual mileage and the comparative cost of petrol or diesel all play a part in determining what makes financial sense for an individual motorist.”
“Motorists considering their next car are being pulled in two directions. Higher petrol and diesel prices make the potential savings from moving away from the pump more attractive, but rising electricity prices inevitably become part of the calculation too.”
“What’s particularly interesting is how sensitive that calculation appears to be. More than half of motorists were already considering an EV before the latest electricity price announcements, so the appetite is clearly there, but for a significant proportion the cost of charging could influence whether that interest ultimately translates into a purchase.”
The latest AA Ireland figures put the cost of filling a 50-litre tank at approximately €93 for petrol and €97 for diesel in September. Scheduled increases in fuel excise were deferred until the end of October, with excise due to begin being restored from November.