Price reform and smart metering required for electric vehicle charging, says ENA

The Energy Networks Association (ENA) has said electricity pricing reform and investment in smart metering will be required fo a smooth transition to electric vehicles. The ENA made the statement in response to the AECOM report, ‘Impact of electric vehicles and natural gas vehicles on the energy markets’, which it said confirms that the right policy settings will enable the energy sector to manage the introduction of electric vehicles.

“The AECOM report shows that flexible pricing options for consumers, supported by smart metering, are essential to avoid electric vehicles compounding the peak demand problem which is forcing up electricity prices,” said Malcolm Roberts, CEO of the ENA.

“Plugging in thousands of electric cars during peak periods will force costly expansions to network capacity. The AECOM report estimates that charging vehicles in peak times could lead to additional costs of $1.8 billion by 2020 rising to $4.6 billion by 2030.”

Roberts said these costs can be avoided if consumers are given incentives to charge their electric cars in off-peak times. “At the moment, the real cost of electricity supplied at peak times is distorted by regulation. Removing these distortions would encourage more efficient use of energy,” said Roberts.

“Smart meters are essential for this shift to more efficient time-of-use pricing,” said Roberts. “Smart meters would enable motorists to find the cheapest times to recharge their vehicles.”