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Installing Electric Vehicle (EV) charging stations is a big investment for many businesses.  Even with government grants for charging points, businesses often must pay to improve the capacity of the local electricity grid.

But, there is a cost further down the line that fleet managers must consider - the purchasing of electricity.

The capacity of an electric vehicle varies depending on the specific model and battery configuration. The battery capacity of an EV determines the amount of electrical energy it can store, which in turn affects its driving range and performance.

For example, the Tesla Model S Long Range has a battery capacity of up to 100 kilowatt-hours (kWh), providing an estimated driving range of up to 412 miles on a single charge. Meanwhile, the Nissan Leaf has a battery capacity ranging from 40 to 62 kWh, providing an estimated range of up to 226 miles.

In general, as battery technology continues to improve, the electrical capacity of EVs is expected to increase, leading to longer driving ranges and more widespread adoption of electric vehicles.

During 2022, business electricity rates offered by suppliers soared from their historical norms of 20p/kWh to as high as 90p/kWh. This increase significantly increases the cost of charging a vehicle - an effect magnified across the whole fleet.

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What can businesses do to secure lower energy costs?

During the energy crisis of 2022, business energy bills were automatically discounted by the energy bill relief scheme.  On 1 April 2023, this government support was significantly reduced and going forwards; most businesses will not benefit from any automatic discount.

Until recently, government support meant that companies largely paid the same electricity and business gas rates, regardless of their current tariff. This is now no longer true, and it’s essential to secure a competitive electricity supply tariff.

Following a milder-than-normal winter across Europe, a fall in wholesale gas rates has significantly reduced the cost of electricity.  There are now very competitive fixed-rate contracts on offer on the market.

In a fixed-rate energy tariff, companies benefit from the certainty of an agreed price per kWh of electricity over a period of one to three years. This is a huge benefit as it provides protection against any future energy crises.

Businesses can quickly collect quotes from multiple suppliers using a business energy comparison website. These services will allow fleet managers to easily compare business electricity prices currently offered in the market and secure the best deal.