Easing EV drivers’ anxiety

Reducing payment anxiety with greater pricing clarity and transparency, says Keith Brown

Keith Brown

Keith Brown

Payment anxiety often arises when electric vehicle drivers need a charger in an unfamiliar location. Costs can vary significantly based on the type of charger, location, time of day, and providers’ policies. As a result, drivers frequently feel confused and overwhelmed.

Some issues stem from a lack of common standards and interoperability, while others arise from variations between chargers. To complicate matters, some chargepoint operators (CPOs) are showing interest in dynamic pricing, where prices can adjust in real-time, based on demand. It’s no surprise that drivers often feel overwhelmed.

So, what can chargepoint operators do about it?

Fair and transparent pricing, clearly displayed

Where prices change predictably, such as when CPOs switch tariffs based on peak or off-peak usage, the need for clarity can be easily addressed, and usually is.

Apps and chargepoints themselves should clearly display the pricing of different chargers – including any additional charges such as parking  – enabling users to make informed decisions. They should also provide alerts about upcoming changes, based on the user’s distance from the charger or their expected arrival time.  

The Public Charge Point Regulations 2023, which mandate price transparency, will help address this issue. However, many AC chargers do not have displays, meaning that the only way for drivers to access pricing information is through an app. One potential solution is to connect separate kiosks to groups of chargers, providing a place where live kWh prices and drivers’ energy consumption can be shown via a user-friendly digital display.

Many CPOs are also considering offering discounts and deals to attract users. Again, these should be clear and transparent, positioning CPOs in a positive light by establishing a ‘standard price’ and framing everything else as a discount. Separately highlighting savings potential via an app could also be useful, providing it does not mislead the user about the price to be paid at the charger.

The dynamic pricing challenge

The introduction of dynamic pricing is expected in the near future; communicating it will be more challenging, not least because it can be difficult for people to understand. Therefore, it will be especially important to provide clear real-time information about current rates on both an app and on a charge point’s digital display. Furthermore, pricing must remain unchanged once the charging session starts, as mandated by the Public Charge Point Regulations 2023.

Nonetheless, a Paythru survey revealed that three-quarters of respondents support dynamic pricing when it leads to more efficient use of a charger, such as by reducing queues or promoting more sustainable energy consumption.

EV drivers generally accept price variations as long as they are perceived as fair and transparent. Dynamic pricing will mean that charges can fluctuate regularly, which may lead to mistrust among users if an app shows one price, but they are asked to pay a different amount upon arrival. According to the survey, nearly all EV drivers (97%) deem it essential or important for apps to display kWh rates, and 93% consider clear upper price caps important. Additionally, 75% of respondents expressed a preference for the ability to lock in a rate on an app to avoid sudden surprises when they reach a chargepoint.

Dynamic pricing can be particularly problematic when searching for a chargepoint through an app, as the price might change by the time the driver arrives. One way around this could be for app functions that lock in a price for the reserved time, as calculated by the CPO’s algorithm. It is essential to consider the backend integration for this process, such as implementing a financial handshake upon booking that reserves the chargepoint at a specific time and price. A minimum fee can also be applied to protect the CPO in case the driver does not arrive as expected.

Greater industry collaboration

The survey results show that EV drivers are generally accepting of price variations among different charge points, provided these prices are communicated clearly and transparently. Given the strength of feeling expressed by drivers, there is a clear need for increased collaboration between the payments sector, public CPOs, and chargepoint management systems to help eliminate the current confusion surrounding charging costs.

These parties should work together to ensure that live pricing, including dynamic pricing, is clearly displayed on the charger and in any associated app. This should include pricing in kWh rates and upper price caps, allowing all drivers to easily view the chargepoint’s kilowatt output for straightforward comparison. If pre-booking is available, the displayed rate should be secured until the driver arrives at the chargepoint.

Paying for EV charging can be overwhelming. It’s important to note that our survey was completed by ‘early adopters’, who are typically more tolerant and knowledgeable about the process. To attract the 'early mainstream' users, there needs to be transparency in the charging experience, as they want something that closely resembles their current fuelling habit.

The industry must collaborate to address the issues raised and create a robust, universal charging experience. This will help reduce payment anxiety and build greater trust among future EV drivers both now and in the future.

Keith Brown is managing director of Paythru