The Public Electric Vehicle Charging Stations Market Faces Criticism over Insufficient Competition by the Federal Competition Authority
The Federal Competition Authority has singled out the lack of competition in public charging stations for electric vehicles. Numerous municipalities have designated zones primarily or entirely for their own power company or specific suppliers. "Consequently, consumers have minimal options, and the risk of elevated charging costs increases," stated Andreas Mundt, President of the Federal Competition Authority.
The disparity in pricing at charging stations may suggest local predatory pricing. In numerous local markets, there are scant providers of charging power. "Here, the market concentration is so intense that dominant market positions can emerge," said Mundt during the release of the final report on the promotion of public charging infrastructure. "Competition in the supply of charging power isn't functioning optimally in many areas." This situation, according to the competition regulators, could have been averted with more favorable guidelines for area assignments.
Market-leading providers often offer not only their own electricity but also permit drivers to charge who buy electricity from a service provider using a charging card. However, the station operator dictates the price. In areas with local market dominance, the operators might set the price for rivals so high that they're priced out of the market.
Despite the availability of electric cars, the high prices at charging stations due to limited competition are a concern. This situation is particularly prevalent in areas with local market dominance, where charging station operators might set prices for rivals excessively high, hindering their market entry.
