The times they are a’chargin’…
These are turbulent times… But then you probably don’t need us to tell you that.
You already know that energy costs are in a serious state of flux, and – whether you’re an EV charging site operator or an EV driver – you’re probably already feeling the pinch from electricity prices that surge and fall on a daily basis.
For both parties, that can be a real pain. Traditionally flat price-per-kWh charging rates can result in the former paying way over the odds when prices drop, and the latter running at a loss when prices spike.
That’s why we’re excited to announce Dynamic Pricing, a new feature that can help everyone work with fairer, more transparent EV charging costs.
Here’s everything you need to know…
What’s the best way to charge for charging? At Spirii, we think the smartest option is the one that offers the most choice.
Dynamic Pricing does exactly that. It allows charging site operators to switch from a fixed rate to adjustable pricing based on real-time market fluctuations – with a bespoke premium that works best for them and their EV-owner customers.
That means that as the on-the-spot cost of energy rises and falls, so does the cost to the end user. For operators, meanwhile, that guaranteed profit margin – which can either be a fixed amount or a percentage of the total cost – ensures you’ll stay a step ahead of the market.
Or, in super simple terms: when the cost of electricity rises, so does the cost-per-kWh to the end user. But the same is true in reverse: when that market cost falls, the end cost to EV owners will too.
Firstly, let’s imagine a fixed per-kWh rate of €0.4. With that set in stone, we’re missing an important factor: the actual electricity cost changes throughout the day. So let’s factor that in.
Let’s say that at 9 AM it’s €0.2, but at 9 PM the cost rises to €0.6.
Now let’s imagine that with Dynamic Pricing, an operator opts to adjust their pricing to match the market, and sets a 20% premium on top of that real-time cost.
On a traditional fixed rate tariff, the customer would be paying well over the odds at 9 AM, while the operator would be running at a loss come 9 PM. With Dynamic Pricing from Spirii, however, the EV owner can choose to charge when the rate is cheapest, and the operator will always benefit from that pre-determined operating profit.
For EV owners and drivers, Dynamic Pricing brings greater choice when it comes to charging costs. With the Spirii Go app, savvy drivers will be able to monitor real-time pricing and opt to charge when they know things will be cheaper.
Often, that’ll mean being charged less than they would on a fixed rate, since energy prices will periodically fluctuate above and below that standard cost.
For operators, Dynamic Pricing means guaranteed profit that’s always higher than their bottom line. The alternative – setting a fixed rate – opens up the possibility of customers paying too little for temporarily-spiked electricity costs, which can result in operators running stations at a loss.
More than anything else, Dynamic Pricing offers much-improved transparency. When costs change to match the wider market, everyone on both sides of the coin knows that they’re getting a fair deal.
That mutual sense of fairness removes business uncertainty and empowers EV owners to charge when it works best for them.
It’s a win-win, in other words – and it’s the smartest way to charge for charging.