Electricity tariff offers free car miles

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busy highway at night

The latest tariff from Ecotricity promises to be cheaper than the Big Six and offers 1,000 free car miles.

In a bid to attract drivers of electric cars, green energy company Ecotricity is offering 1,000 free miles to drivers signing up to its latest tariff.

Customers with the Green Electricity + Car tariff will have access to a national network of electric car chargers, known as the Electric Highway.

Gas and electricity supplied through the company is green energy, and Ecotricity claims to be cheaper than all the Big Six suppliers.

Green energy for your car and home

The new tariff from Ecotricity will cost an average of £519.58 per year. This is a variable-rate contract, so it's not immune to price hikes, but the company does have a price freeze in place until April so for the next two months at least it won't be changing.

It also claims that for the average customer it's still cheaper than any standard tariff from the Big Six energy companies. However this doesn't take into account fixed-rate tariffs.

To benefit from the free miles you'll need a 100% electric or plug-in hybrid car. The tariff has been launched in connection with Volkswagen's first electric car, which is about to come onto the market. All customers buying one of the new cars will be offered the new energy tariff and a free smart meter installation.

Dale Vince, founder of Ecotricity, said: "To get the greatest environmental benefit from an electric car, it needs to be charged using 100% green electricity from the wind and the sun – otherwise you're still powering it from dirty fossil fuels.

"Now a single energy company can provide power to both your home and your car from the same clean, green, renewable sources."

As the freebie is only going to be suitable for people with an electric car, it cuts out a large percentage of the population. Even then it might not be the best deal for you, so it's worth shopping around first to check the tariff you are switching to gives you the best value for money.

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The cheapest energy tariffs

The price you pay for your gas and electricity will depend on your own circumstances, but one way to save is to regularly switch suppliers.

The best offers are often reserved for new customers, so if you've not changed providers in a while it could be an easy way to reduce your costs.

The cheapest tariff on the market comes from First Utility, costing an average of £1,037 per year, which is £286 cheaper than the average tariff, as you can see from the table below.

Supplier

Tariff

Average Cost

Saving vs Typical Bill*

Cancellation Penalties

First Utility

iSave Fixed v14 July 2015

£1,037

£286

£30 per fuel if switching before fix end

Ovo

Cheaper Energy Fixed

£1,042

£281

£30 per fuel if switching before fix end

Green Star Energy

No Worries 24 Months Fixed Version 1311

£1,061

£262

£31.50 per fuel if you switch away before end of fix

Green Star Energy

No Worries 12 Months Fixed Version 1311 Paperless

£1,073

£250

£31.50 per fuel if you switch away before end of fix

Co-operative Energy

Fixed Price July 2015

£1,077

£246

None

ScottishPower

Online Fixed Price Energy February 2015 v3

£1,081

£242

£25 per fuel if you switch away before end of fix

Ovo

Cheaper Energy (Fixed to June 2016)

£1,091

£232

£30 per fuel if switching before fix end

British Gas

Fixed Price February 2015

£1,092

£231

£30 per fuel if switching before fix end

Sainsbury's Energy

Fixed Price February 2015

£1,092

£231

£30 per fuel if switching before fix end

EDF

Blue +Price Promise June 2015

£1,099

£224

None




*Saving calculated against an average bill £1,323 as declared by Energyhelpline, 2014. Source: energyhelpline.com,31/01/14. All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 13,500 kWh pa of gas and 3,200 kWh pa of electricity

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12 ways to save £10,000 in 2014