While electric vehicles are seen as an important part of addressing the global impact of climate change, embracing the technology depends very much on adapting to user needs at the local level.
Developing new technologies can also create opportunities for new processes and new players in the game.
Origin Energy has become a player in helping people to adopt electric vehicles. Rather than just be a provider of power, they are now directly working with customers by providing leasing and subscription services, and facilitating an understanding of the practical use of electric vehicles.
In 2019, Chau Le moved from being a manager at Origin developing the overall strategic directions of Origin to taking on the more focused position of project managing one of their major strategic directions. She took on the role of General Manager of eMobility and now leads a team of 40+ people.
Origin has had electric vehicles on their fleet since 2012. The early Nissan Leafs were limited by a range of about 150 kilometres. But as electric vehicles improved (including the Nissan which was a pioneer in the field, being the first mass produced electric vehicle on the market in modern times) so the attitude has changed.
Ms Le noted that when they initially began to work with the market two years ago, the attitude was “Why EV’s?“; “Why do we need to start thinking about EV’s?“; and “Why EV’s now?”. She now sees the attitude as being more like: “We get why EV, now tell us how we’re going to do it. Show us how, help us”.
Novated leases have benefits but they do lock people into the one vehicle for some time (normal three years). However, a subscription service gives some flexibility to consumers in what vehicle they have, and how long they have it.
With Origin, you can take out a subscription for a minimum of 30 days and then keep the car; or change it for another model; or just give it back. Even if the vehicle suits your needs for most of the time, you can choose to swap to a different vehicle for a period, perhaps to go on holiday, or during a time when a family or organisation may not need multiple vehicles.
The car subscription service also has tax benefits of leasing, and the FBT Exemption applies just like a novated lease.
Fleet operators are seeing the benefits of EV for salary salary packaging. Ms Le said “We’ve seen a lot of interest from both organisations as well as employees of those organisations, from both a sustainability point of view, but also from a financial point of view, like it’s starting to stack up.”
Providing the vehicle is one thing but Origin is also running interactive activities such as drive days, to give people firsthand experience and advice.
Origin has a link to a range of EV manufactures. Fleet EV News attended an event at BMW Sydney to officially launch their program for the new BMW i4 eDrive35 before it’s officially launched onto the Australian market.
With the BMW’s solid power figures, the usual excellent acceleration of an electric vehicle, a rated range of 430kms and prestige features, attendees at the Origin 360 EV event where not just early adopters or technical nerds. They included business people who know how to keep an eye on the bottom line. But also, in fairness, they did have a social mindfulness and a broad concern for the future of the environment.
New technologies can also mean new collaborations
Origin has linked to the Australian company Jolt, who are installing charging stations initially in major urban areas.
Doug McNamee who was at the event, is the founder and CEO of Jolt, who has established a creative business model. At their charging stations, you get the first seven kilowatt hours (kWh) for free, paid for by advertising at the site.
Doug suggests that while some clients do frequently charge just 7 kwh and thus get free running costs, the typical charge at a Jolt site is 13-14 kWh, with the marginal cost being $0.46 per kWh. Doug says this can result in a cheaper cost than charging at home.
One of the side benefits is the advertising screens make the site more visible. In some supermarkets the changing locations do not stand out and you must look harder than even looking for a vacant space.
The Jolt system is only for DC charging which is quicker than AC but does not suit all EVs on the market.
Jolt started in 2018 in Sydney and has recently launched in the UK and Canada and are now looking at the US market.
In summary, good management is not just making incremental changes on what has always been done in the past; it is understanding real needs and embracing new ways to serve them.
