Electric Car Energy Tariff Launched By British Gas

British Gas has launched a special tariff aimed at owners of electric cars, allowing them to fuel their vehicles for as little as 1.25p per mile.

This tariff will provide cheap off-peak electricity during the night so that electric car owners will be able to plug them in and have their vehicles ready and charged in the morning.

It would cost only £6 to charge an electric car using this tariff compared to around £60 to fill up the average petrol driven car.

With an average of 10,000 miles per year, this could cut £1,200 from an owner’s annual fuel costs, British Gas is claiming.

The deal will also offer electric car owners priority installation of a smart meter in eligible homes. The smart meter will put an end to estimated bills and show customers how much energy they are using in real time.

Smart meters are the key to making the most of electric cars as well as other technologies like solar panels and smart appliances.

The tariff will be widely available early next year, however British Gas is trialling it with 150 electric car owners to gain a good understanding about the energy demands of their households.

“British Gas is making the process of running your electric car hassle-free. We’ll install the smart meter, supply cheaper electricity to charge your car and advise you on when to charge to reduce your carbon footprint.”, says Dean Keeling, Managing Director of British Gas Smart Homes.

It is predicted that by 2020, electric vehicles could account for approximately ten percent of all cars sold in the UK. This equates to roughly 1.2 million UK households owning an electric vehicle.

MoneyHighStreet.com Comment: This is an exciting development along the road to wider electric car usage, however there will still be a shortage of electric cars with sufficient range and carrying capacities in 2012 to make even the smallest dent in the dominance of conventionally powered cars.

It is definitely a welcome step in the right direction, though.