For several weeks, electric vehicle drivers had to deal with the rising electricity prices.
Of worries are born around electric vehicle charging price and more generally around the economic relevance of the electric car in a context of rising electricity prices.
Whether electricity price volatility and speculation mattersmaking the choice of electric car becomes very risky from an economic point of view.
According to ADEME, the national association for the development of electric mobility, despite the increase in electricity prices, “electric vehicles remain more competitive in use than their thermal equivalents”.
ADEME explains that “the electric vehicle consumes less energy, thanks to the efficiency of the electric motor three times greater than that of the internal combustion engine”.
And while the cost of energy, for a thermal vehicle, is almost constant (i.e. around 12 euros per 100 kilometers, whatever the use), the price of electricity for an electric vehicle varies depending on its usage and charging method : from 2 euros per 100 kilometers with domestic charging, this cost can increase to 6 euros per 100 kilometers when charging on public roads (in urban or semi-urban areas) and around 12 euros per 100 kilometers when charging on the motorway.
On average, over a year, ADEME considers that savings of around 50% in the fuel budget can be achieved with an electric car.
While the electric vehicle benefits from the purchase of a ecological bonus of 6,000 euros (i.e. a public procurement subsidy) intended to partially reduce the additional cost of the electric car compared to the thermal car by around 11,000 euros on average, ADEME considers it necessary, on the part of the Public Authorities, to offset the cyclical rise in electricity prices and their potential impact on the cost of charging electric vehicles.
In view of the cyclical rise in energy prices, ADEME considers it necessary for public entities to include the price of charging an electric vehicle in the same way as that of fuel for a thermal vehicle. This observation is all the more true for ADEME for top-ups in condominiums, companies and roaming (individuals residing in single-family dwellings generally benefit from offers indexed to the regulated tariff).
For ADEME, the user of an electric vehicle is currently not treated in the same way as a user of a thermal vehicle:
• The user of internal combustion vehicles will benefit from a discount on gasoline and diesel from the public authorities;
• The user of an electric vehicle benefits from price protection for charging at home when he has a “own” subscription, but does not benefit from price protection either at public terminals (roads, motorways, etc.), or at home when passing through the operator service.
“Like users of thermal vehicles, who benefit from discounts on gasoline and diesel, it seems necessary for the Government to implement, in the short term, solutions aimed at “electromobilists” to sustain and accelerate the transition to electric. The application of the fuel discount to recharge and the extension of the tariff shield to recharge operators in co-ownership and in business seems essential” assures Clément Molizon, General Delegate of Avere France.
ADEME seems to forget that “the long-term economic advantage of the electric vehicle” is based solely on different taxes (an ecological bonus on purchase of 6,000 euros for the electric vehicle while the thermal vehicle is taxed with an ecological penalty on purchases from 128 g of CO2/km) and a tax on fuels and diesel (tax on petroleum products).
On the other hand, used electric vehicle resale value remains very uncertain and determines the long-term cost of electric vehicle ownership and its possible economic advantage, which has yet to be demonstrated. The potential economic benefit of the electric vehicle is highly dependent on the mileage covered; a small wheeled vehicle unable to absorb the additional cost of around 11,000 euros for the electric vehicle.
Finally, if in September 2022, electric cars overtook diesel cars in registrations, with a 16% market share (14.4% for Diesel), this is largely due to the driving ban in low-emission zones for diesel-powered vehicles from 1 January 2025, i.e. less than three years.
Buying a Diesel vehicle in 2022 to be hit by a traffic ban in all French cities from January 1, 2025 makes no economic sense for a driver who would keep his vehicle for more than two years..
Image by A. Krebs from Pixabay