The Transport Regulatory Authority highlights particularly high fee rates for operating electric charging stations.
Published on 08/23/2024 6:35 p.m.
Reading time: 2 min
If you have ever charged your electric car at a motorway service station, you may have been surprised by the price. Compared to a traditional car, the profits do not seem as significant. This is what the Transport Regulatory Authority (ART) points out in an annual report published at the beginning of July on market dynamics and contracts awarded by motorway concession companies in 2023.
In the noted report by The Monitor and by The Parisian, the ART notes that the price for charging a car at these service stations is comparable to that of refueling a petrol car. More specifically, with an energy consumption of 25 kWh per 100 km, charging at a motorway service station costs between 10 to 25 euros per 100 km, while the average cost for a petrol car in 2022 was around 13 euros for the same distance.
This charging price could discourage many French citizens. The economic benefit of electric cars, which typically cost an additional 10,000 to 15,000 euros compared to traditional vehicles, is diminished when recharging costs become too high for the consumer.
But what causes these high prices? The establishment and operation of these electric charging stations, often referred to as electric vehicle charging infrastructure (IRVE), fall under sub-concession contracts between a motorway company (such as Vinci Autoroute, APRR, or Sanef) and a sub-concessionaire like TotalEnergie, Engie Vianeo, or Electra.
To clarify the high consumer costs, ART emphasizes: “the expenses related to building charging stations and, at times, substantial costs of connecting to the electricity grid” and the maintenance costs for the sub-concessionaire. The authority specifically mentions that the royalty rates charged by motorway concession companies (SCA) are excessively elevated, averaging around 18% of the revenue paid to the SCAs, while the average royalty for all contracts is only 4.2%.
For motorway concession companies, the pricing for charging services is attributed to the equipment “and not to a payable royalty,” explains Sanef to Franceinfo. At motorway service areas, these often involve ultra-fast charging stations exceeding 150 kW, capable of fully charging a vehicle in approximately 30 minutes. This charging solution is nearly as costly outside of motorway areas, as highlighted by The Parisian. “The price of fast charging is determined by the investments necessary to provide a very high power service,” the company elaborates.
The transport regulator is proposing to lower “the royalty rate from 18% to 5%”, which would enable charging prices to drop “by over 10% while preserving the same profitability” for the sub-concession company.
The Rising Costs of Electric Vehicle Charging Stations: An In-Depth Analysis
Published on 08/23/2024 6:35 p.m.
Reading time: 2 min
An electric vehicle being fully recharged. (DENIS CHARLET / AFP)
Understanding the Charge: An Overview of Pricing Disparities
If you have ever recharged your electric car at a motorway service station, you may have felt the sting of high prices that are surprisingly on par with conventional petrol vehicles. According to a report published by the Transport Regulatory Authority (ART), the average cost of recharging an electric vehicle at these stations can range from €10 to €25 for every 100 kilometers.franceinfo
This pricing trend is alarming when you consider that a petrol vehicle’s average cost for the same distance is around €13. For many consumers, this raises questions about the economic benefits of electric vehicles, especially when their purchase price often exceeds that of traditional combustion engines by €10,000 to €15,000.
The High Costs Explained: Infrastructure and Royalty Fees
Why Are Charging Fees So High?
The exorbitant costs associated with charging electric vehicles stem from a combination of factors, predominantly related to infrastructure. Electric vehicle charging stations—referred to in industry jargon as electric vehicle charging infrastructure (IRVE)—face high installation and operational costs.
According to ART’s findings, these costs can be largely attributed to:
- High Capital Expenditures: Building charging stations and connecting them to the electrical grid incurs significant costs.
- Maintenance Fees: Ongoing maintenance by sub-concessionaires adds another layer of expense.
- Royalty Rates: On average, motorway concession companies (SCA) collect around 18% of turnover from sub-concessionaires, well over the average of 4.2% for other contracts.
How are Charges Determined?
Motorway companies argue that the pricing structure for recharging services is driven by the costs associated with providing ultra-fast charging stations (above 150kW). These stations offer rapid charging options, allowing users to replenish their vehicles in roughly 30 minutes, but the initial costs are reflected in the prices charged at the pump.
Potential Solutions: Recommendations from the Transport Regulator
In light of the findings, the Transport Regulatory Authority recommends lowering the royalty rate substantially—from 18% to 5%. This change could potentially reduce charging prices by more than 10% while still maintaining profitability for sub-concession companies. This is a major consideration as policymakers strive to make electric vehicles a more attractive option for consumers.
Case Studies: Real-World Experiences with EV Charging
The Road Trip Perspective
Recent studies cite anecdotal experiences from electric vehicle users during road trips across Europe. Many report that the costs associated with charging can vary significantly from location to location, adding uncertainty to travel plans and often leading to dissatisfaction among users.
Comparative Analysis: Charging Stations vs. Traditional Fuel Stations
When comparing EV charging stations to traditional fuel stations, numerous factors warrant attention, including:
| Factor | Electric Vehicle Charging Stations | Traditional Fuel Stations |
|---|---|---|
| Average Cost per 100 km | €10 – €25 | €13 |
| Charging Time | 30 min (ultra-fast) | 5 min (fill-up) |
| Infrastructure Investment | High initial costs | Lower variability |
| Environmental Impact | Lower emissions | Higher emissions |
Benefits of Electric Vehicles Despite Charging Costs
While the high costs associated with electric vehicle charging stations are a legitimate concern for potential buyers, there are substantial benefits that still make electric vehicles an attractive alternative:
- Lower Environmental Impact: EVs produce far fewer emissions over their lifecycle compared to traditional vehicles.
- Increased Incentives: Many governments offer tax rebates and incentives for electric vehicle purchases, helping offset initial costs.
- Long-Term Savings: Even with high initial charging fees, owners can realize savings on fuel and maintenance over time.
Practical Tips for EV Owners
To navigate the challenges of high charging prices, consider these practical tips:
- Charge at Home: If possible, invest in a home charging station to take advantage of lower electricity rates.
- Plan Ahead: Use apps to locate charging stations and check real-time pricing before embarking on longer journeys.
- Utilize Off-Peak Charging Rates: Many utility providers offer lower rates for charging during off-peak hours.
