Origin Energy, one of the country’s big three energy utilities, has announced plans to offer a monthly electric vehicle subscription service which includes five hours of free electricity each day.
The company says the service is designed to help Australians access EVs, to power them and to pay for them.
The subscription service will be facilitated through employee salary sacrificing, which enables customers to take advantage of the recent fringe benefit tax exemption for EVs.
Commenting on the new service, the general manager of e-mobility at Origin Chau Le, said: “Origin is committed to helping get more EVs on the road, and to do this we need to make it easier and more affordable for people to get into their first EV, and then support them at all points of their EV journey.
“We know that cost is a major barrier preventing many people from making the switch to EVs, which is why we are providing affordable and flexible alternatives to car ownership, and making it cheaper for customers to charge their vehicles,” she said.
Origin says it initially launched this subscription plan to Origin employees in January and has had around 400 requests for quotes, with about 50 employees signing up so far.
Free electricity carrot designed to shift charging behaviour
The plan provides customers with five free hours of electricity between 10am and 3pm daily. With so much solar electricity coming onto the grid during this period, the plan encourages people to soak up excess renewable energy into their EVs and so avoid loading at peak times in the evenings.
The company says that the energy mix during this time will still include fossil fuel powered electricity. However, the behavioural change of charging around midday will benefit renewables uptake.
The plan will also include off-peak night rates between 1am and 6am . The 5 free hours and off-peak rates are eligible to customers who sign up to the subscription plan, along with customers who purchase a smart EV charger from Origin and to Audi e-tron customers as part of a new partnership between both companies.
Origin says that customers will be able to select from a range of EVs including the Volvo XC40, Tesla Model Y and Model 3 and Polestar 2., as well as BYD, Kia, Hyundai and MG EVs. Â A separate deal has been struck with Audi for owners of e-Tron EVs.
Interested customers can register their interest on the website, and Origin will contact their employer directly about entering into an arrangement for them to offer this salary packaged EV subscription plan to their employees.
Pricing
Subscription pricing starts from $500 per week for a Tesla Model 3 on pre-taxed salary. This means people in tax brackets of 32.5% and 45% will reduce their income tax by $173 to $235 which the company says will result in an after tax subscription cost of $265-$235 per week (includes Medicare Levy).
Origin says based on the figures above the annual costs would be $13,780 – $17,000 per year and includes registration, insurance, tyres, depreciation and interest. If the car is charged during the 5 hour free period then fuel costs would also be essential zero.
Origin also announced it is selling smart EV chargers which can automate charging times to within the free hours of the EV energy plan. It has also struck a deal with EV charging network Jolt to supply 100% green power to match the electricity consumed at its charging stations.
EV program a good step, but Origin still one of Australia’s worst polluters
In 2022 Australia’s Clean Energy Regulator listed Origin Energy as Australia’s fourth highest greenhouse gas emitter, behind other Australian energy giants AGL and Energy Australia, although its emissions will fall when it closes its last coal generator, the Eraring facility in NSW which is the biggest in the country, in late 2025.
While stressing that gas remains a core part of its business, in September last year Origin yielded to public pressure and announced it would exit from gas exploration, starting with the Beetaloo Basin.
The Driven’s take: Whether or not Origin’s 360 EV program is successful in shifting the dial on EV uptake remains to be seen. People who are interested in making the switch to an electric vehicle will need to do their own numbers to see if a subscription service is indeed the best option for them.
Most people who are looking to make the switch to EVs are also conscious of reducing their overall emissions.
Fossil fuels still make up a large proportion of Origin Energy’s electricity supply, although the company bidding to take control of Origin, the US funds giant Brookfield, plans to invest $20 billion in renewables by 2030, and separate the utility business from the LNG investment, which will be bought by US-based Mid-Ocean Energy.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.