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Smart EV Charging Plan Could Save Drivers Up to £1,000 a Year on Electricity Bills

Government and Ofgem plan makes smart EV charging default. Saves up to £1,000 per year by shifting to off-peak hours. Smart charge points required.

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Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 26 Jun 2026
Last reviewed 26 Jun 2026
✓ Fact-checked
Smart EV Charging Plan Could Save Drivers Up to £1,000 a Year on Electricity Bills

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TL;DR

A new government plan for smart electric vehicle charging could save EV drivers up to £1,000 per year by automatically shifting charging to off-peak periods when electricity is cheapest. The plan, developed with Ofgem, requires charge points to be smart-enabled by default and allows drivers to set charging preferences around their routine.

Last reviewed: June 2026 | Sources: Ofgem, GOV.UK, DBT

Energy

Smart EV Charging Plan

Potential saving: up to £1,000 per yearHow: auto-shift charging to off-peak hoursRequired: smart-enabled charge pointsOff-peak rate: significantly lower than peakSource: Ofgem, DBT

What the smart EV charging plan involves

The government and Ofgem have published a plan to make smart electric vehicle charging the default approach for EV drivers across the UK. Under the plan, charge points installed at homes and workplaces will be required to be smart-enabled, meaning they can communicate with the electricity grid and automatically shift charging to periods of lower demand when electricity prices are lower.

The plan is part of a broader strategy to manage the increase in electricity demand that widespread EV adoption will create, while also delivering financial benefits to EV drivers who allow their vehicles to charge during off-peak periods.

How smart charging saves money

Electricity prices vary significantly throughout the day, with overnight periods typically offering the lowest rates. Standard home charging at peak evening times can cost significantly more per kilowatt-hour than overnight or early morning charging. For a typical EV driver covering 8,000 miles per year, the difference between peak and off-peak charging rates can amount to several hundred pounds annually.

Time-of-use electricity tariffs, such as Octopus Energy's Intelligent Octopus and similar products from other suppliers, already offer substantially reduced rates for EV charging during off-peak hours. The smart charging plan aims to make this type of optimised charging accessible to all EV drivers regardless of their current tariff.

What EV drivers need to do

Drivers with existing smart charge points can check whether their unit is compatible with smart charging functionality and whether their energy supplier offers a time-of-use tariff. Many smart charge points already have this capability but require the driver to activate it through an app or the charge point settings.

Drivers planning to install a home charge point should ensure any new installation is smart-enabled. From 2022, regulations already require new charge points installed at homes and workplaces to meet smart charging standards. Existing charge points installed before this requirement are not automatically compliant.

The wider grid management context

The smart charging plan serves two purposes. For EV drivers, it delivers cost savings by shifting charging to cheaper overnight periods. For the electricity grid, it helps manage the significant additional demand that millions of EVs will create, avoiding the need for expensive grid infrastructure upgrades if all EVs were to charge simultaneously at peak times.

The plan also includes provisions for vehicle-to-grid technology, where EV batteries can discharge back to the grid during peak demand periods, potentially generating income for EV owners who allow their vehicles to act as temporary grid storage.

Time-of-use tariffs and how to access them

Several energy suppliers offer dedicated EV tariffs with significantly reduced overnight rates. These typically require a smart meter and a compatible smart charge point. The specific hours of cheap rate electricity and the applicable rates vary between suppliers and change with market conditions. Compare time-of-use EV tariffs directly with energy suppliers rather than through comparison sites, as tariff availability changes frequently.

Disclaimer

This article covers government policy proposals and does not constitute financial or energy advice. EV charging cost savings depend on individual usage, tariff and charge point compatibility. Verify current tariffs directly with energy suppliers.

Frequently asked questions

How much can I save with smart EV charging?

The government estimates savings of up to £1,000 per year for EV drivers who optimise charging using off-peak tariffs. The actual saving depends on annual mileage, the difference between peak and off-peak rates on your specific tariff, and how consistently charging is shifted to off-peak hours.

Do I need a special charge point for smart charging?

Yes. Smart charging requires a smart-enabled charge point that can communicate with your energy supplier's systems to schedule charging at optimal times. Charge points installed since 2022 at homes and workplaces must meet smart charging regulations. Older charge points may not be compatible.

Which energy suppliers offer EV time-of-use tariffs?

Several suppliers including Octopus Energy, E.ON, EDF and others offer dedicated EV tariffs with lower overnight rates. Availability, rates and eligibility requirements vary. Contact your supplier or compare EV tariffs directly with suppliers to find the most suitable option.

What is vehicle-to-grid technology?

Vehicle-to-grid (V2G) technology allows compatible EVs to discharge stored electricity back to the grid during periods of high demand. EV owners with V2G-compatible vehicles and charge points can potentially earn money by selling stored electricity back during peak periods. V2G is at an early stage of UK deployment and requires specific vehicle and charge point compatibility.

Does smart charging affect my EV battery?

Smart charging that restricts charging to specific time windows does not inherently harm EV batteries. Charging at lower power levels (which overnight charging often uses) can actually be gentler on battery longevity than rapid charging. Check your vehicle manufacturer's guidance on optimal charging practices for your specific battery technology.

Sources

GOV.UK: Smart EV Charging Plan
Ofgem: Electric Vehicle Charging
GOV.UK: EV Charge Point Regulations

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Editorial Disclaimer

The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

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