THE cost of electricity is set to plummet - at least as far as Mitsubishi's revolutionary i-MiEV electric car is concerned.

Although UK deliveries are not scheduled to begin until next year, Mitsubishi has already slashed the price of its plug-and-run compact by more than £8,500.

And with the Government's recently confirmed consumer incentive of £5,000 for electric vehicles, it means that potential buyers will now pay £13,500 less than the previously announced price of £38,699.

That was the price announced in March, but now Mitsubishi has cut the price of the i-MiEV to £28,990 for orders placed for delivery from January 1 next year.. This coincides with the Government's £5,000 incentive- which means customers will only have to pay £23,990.

Mitsubishi says that the price realignment signals the Japanese firm's global intention to remain first in the promotion and establishment of the early electric vehicle market.

Says Lance Bradley, managing director of Mitsubishi Motors in the UK:"The i-MiEV will remain first in all respects. We have been first in almost every aspect of the UK's EV market for the last two to three years and we're not going to give up that position easily. The electric vehicle is now a reality, with all our cars being European Whole Vehicle Type Approved."

Over 2,300 i-MiEVs have been operating on Japanese roads since full production started in July last year - making Mitsubishi Motors the first manufacturer to mass-produce an electric vehicle in the world.

Meanwhile here in the UK, the car has been involved in official government end-user trials since mid-December 2009 with customers in the Coventry and Birmingham area.

Some of the key findings of the trial include the fact that the majority of journeys have been less than five miles while average daily mileage has been just 23 miles, which is well within the i-MiEV's 90 mile range.

The i-MiEV will be well-equipped - the days of the ‘milk float' mentality are truly over as far as electric vehicles are concerned, says Mitsubishi. In addition a range of bespoke accessories will be offered to help owners fit their cars to their own personality. These will range from roof and wing mirror graphics to enhanced audio / MP3 options, leather interiors and environmentally friendly accessories.

But the key to its success in the UK will be its low running costs - estimated at only £144 for 12,000 miles driving. A full charge will cost just 96 pence using 16kW of power at an average of 6p per kW.

In addition the i-MiEV will be exempt from road tax and the London Congestion Charge while owners will be able to park for free in some London bouroughs and cities such as Milton Keynes. Business users will not have to pay any benefit-in-kind company car tax.