Will energy hikes pull the plug on eco-cars?
…letting fuel-eff icient diesels power ahead
Electric cars might need a helping hand in the Budget as rising energy costs gobble up their price advantage. Petrol and diesel have fallen in price in recent months while electricity bills go through the roof. And this leaves the most fuelefficient diesel cars snapping at the heels of EVs (electric vehicles) – at least when it comes to the cost of public charging, our new study shows. The Peugeot 208 diesel, for example, was named Carwow’s most efficient diesel car recently, using just 3.8 litres of fuel to cover 100km. This means a 400km trip would cost €28.85 – just 18c more than an electrical vehicle – according to our research (see comparison table on opposite page).
Many other diesel cars such as the Citroen C2, Opel Corsa and VW Golf also have brilliant fuel-efficiency.
Two more Peugeots, the BMW 1 series and the Ford Focus feature in the top 10 most fuel-efficient cars, perhaps unsurprisingly. But two unpredictably lean machines on the list are the BMW 3 series and the Audi A4, both much-loved by ‘petrol heads’ for their performance.
The fuel-efficiency figure for electric cars in our table came from the ESB’s own figures when it announced the most recent hike in EV public-charging costs in May. Since then electricity prices have soared further and EV owners fear another price hike would make some diesel cars more fuel-efficient than public-charged cars.
‘The increasing costs of electricity will impact on those charging electric cars, in particular EV owners who don’t have access to home charging,’ said Brian Cooke, director general of the Society of the Irish Motor Industry.
‘The EU are meeting in early September to discuss how electricity charges are calculated, and hopefully this will result in a material reduction in electricity pricing.
‘Any additional tax concessions in relation to electricity, including VAT reductions, that can be given in Budget 2023, should be seriously considered by the Government.’
A spokeswoman for the Sustainable Energy Authority of Ireland (SEAI) said it had updated its comparison calculator in light of soaring energy costs.
‘Our calculator allows you to compare annual fuel costs for various electric vehicles and petrol and diesel cars, as well as total cost of ownership,’ she said.
And it still shows a sizeable advantage to EVs – as long as they can charge at home, and ideally, use cheap, night-rate electricity. ‘The approximate savings are between 70-80% on an annual fuel bill,’ she said, for cars charged in this way.
The spokeswoman said grants are available for home chargers, while local authorities and management companies can apply for funds to instal them in public spaces and apartment car parks.
However, many people in urban areas are unable to access home chargers because they park on the street. MoneyguideIreland.com says someone with a day/night meter, charging a car at home overnight will pay about 15.4c per kwh. That would work out at about €2.28 for a 100km drive – or €10.12 for 400km, which is pretty good value. On a normal meter – unit rates are about 31c per kwh. Therefore a charge to do 100km would cost about €4.62 – or €18.48 per 400km.
However, some of the public charging points will cost as much as €10.80 for the same charge, according to Moneyguide Ireland, which could mean paying €43.20 for a 400km drive.
‘A big part of the electric vehicle appeal has always been lower running costs, but these price rises could jeopardise more people making the switch to electric cars,’ says Emily Seymour, energy and sustainability editor of Which? magazine.
‘Many non-hybrid petrol drivers will still save money by switching to electric, but for many diesel drivers that now won’t be the case. We found that the upfront cost of buying an EV is the biggest barrier preventing drivers from considering an electric vehicle – and this latest energy price rise could further prevent people from making the switch.’
When challenged in a Dáil question about the rising costs of EVs after May’s price hike for public chargers, Eamon Ryan said: ‘Eighty
per cent of all EV charging is done at home. For a sample return journey from Galway to Dublin (400km) most EV owners, if charging at home, would only require a small top-up charge of 60km from ESB eCars’ fast chargers.
‘Even with 100% charging from a fast charger, ESB eCars estimated that using a PAYG plan the cost would be €26.67.
‘This compares to a diesel car cost of €37.34 for the same trip.’
However, since June, diesel has fallen from €2.05 a litre to under €1.90, according to AA figures for August 2022.