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German Electricity Price Brake Fails to Benefit EV Drivers

  • Written by : Ashton G. Curran
  • Date Published : 2023-04-16
  • Date Updated : 2023-04-16
  • Category / Tag : articles
German Electricity Price Brake Fails to Benefit EV Drivers
The German government's electricity price brake regulation is designed to control the rising electricity prices, and it is being celebrated by the government, however, it appears that the regulation is not benefiting electric vehicle drivers who are experiencing a surge in recharging costs at charging stations....

The regulation sets a maximum price of 40 cents per kilowatt-hour for 80 percent of an individual's previous energy consumption for those consuming less than 30,000 kilowatt-hours of electricity per year.

It is also applicable to the operators of publicly accessible charging stations.

However, the implementation of the electricity price brake for charging station operators is complex and requires an application for the entire company.

Moreover, the regulation does not oblige charging station operators to apply the relief amount to the customers of the charging stations.

EnBW, a large network operator in Germany, has decided not to take advantage of the electricity and gas price brakes because the administrative effort involved in claiming the electricity price brake is disproportionate to any potential benefit, including that which it could then pass on to its customers at the charging points.

As a result, the cost of recharging electric vehicles at EnBW remains unchanged at 0.61 euros per kilowatt-hour.

The same goes for Ionity, where a 350 KW charging station for customers without a mobility service provider contract already costs more than an impressive 0.79 euros per kilowatt hour.

However, ad hoc chargers, those without a subscription or contract model in Germany, are paying an average of 0.52 euros per kilowatt-hour, as revealed by the Statista study.

The study also found that covering a distance of 100 kilometers with an electric car that consumes 20 kWh of electricity costs an average of 10.42 euros at a normal charging station and as much as 12.51 euros at a fast charging station.

The top costs for a quick charge of 20 kWh are 15.80 euros, which is much more expensive than fueling a conventional petrol engine vehicle with a consumption of six liters, where only 10.47 euros are due.

The charging station operators are the winners of the electricity price brake regulation, according to Lichtblick spokesman Ralph Kampwirth.

The lack of competition is the main driver of the price spiral, since the majority of the charging stations in a region often belong to a dominant network operator.

The Hamburg energy supply company believes that the electricity price brake could help to cover up the status quo by lowering prices if necessary and giving customers a “not-so-bad” feeling.