Electric vehicle: Government wants to expand charging network, Aussie households to be charged
In a cost-of-living crisis, the government is expecting everyone to foot bill for electric vehicles.
Australians without electric vehicles could soon be paying for them, regardless of whether they own one or not.
The move comes as more Aussies flock to EVs, already saving huge sums from escaping high prices at the bowser.
In the month of March, the Federal Chamber of Automotive Industries reported a 42 per cent increase on EV sales, with 15,839 sold. They said regular car sales had dropped by 3.3 per cent.
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By continuing you agree to our Terms and Privacy Policy.It came as petrol prices skyrocketed by a record 32.8 per cent amid the US-Iran war. In March alone.
Unleaded fuel prices surged above $2.50 a litre and diesel surpassed $3 a litre for the first time ever.
Despite this, the government is proposing that all Australians help cover the cost for EV users, regardless of what they drive.
The goal is to expand the charging network, which is not expanding fast enough, particularly in regional and suburban areas.
In those communities, private operators have been reluctant to invest because of slower returns.
Under the new program, electricity networks would become involved in the roll-out.
The networks would be tasked with finding suitable sites to build charging infrastructure for EVs and private operators would have the opportunity to install and operate at the proposed sites.
If they are not interested, the network would operate the site itself to fill the gap in the market without overstepping private operators.
The proposal is expected to double the country’s existing network, delivering up to 14,000 extra chargers.
While the government is expected to help offset costs, Australian households will likely be expected to foot some of the bill.
Instead of costs falling on the shoulders of EV users, a large portion will be added to the regulated asset base.
Under the program, households could pay up to $1.44 a year to help deliver additional EV chargers.
The government insists the impacts on Australians’ bills will be “minor”.
“The estimated peak bill impact is between $0.79 and $1.44 per household per year, and no impact is expected before 2029,” a government spokesperson said.
Supporters of the proposal have celebrated the potentially expanded charging network, while critics have raised concerns that it is distasteful in a cost-of-living crisis.
Energy consultancy Nexa Advisory chief executive Stephanie Bashir said the model sounded good in theory.
“As ever, though, the devil is in the implementation and the detail,” she told The Australian Financial Review.
“As written, the rule change is picking sides and allows the networks a lot of leeway, which is detrimental to competition and therefore to consumers.”
