LichtBlick Monopoly Analysis: Lack of Transmission Prevents Fair Competition in the EV Charging Market

(ots) Although the expansion of public charging infrastructure continues to advance, local providers still dominate the regional charging station market.

LichtBlick Monopoly Analysis February 2025 Infographic. (Photo: LichtBlick SE/LichtBlick SE/obs)
LichtBlick Monopoly Analysis February 2025 Infographic. (Photo: LichtBlick SE/LichtBlick SE/obs)

This is shown by the fifth monopoly analysis by LichtBlick. On average, the respective market share is 74 percent. Compared to the last analysis, the development has essentially stagnated. In Wiesbaden (from 90 to 94 percent), Hanover (from 91 to 93 percent), and Cologne (from 68 to 72 percent), the local monopolists have even been able to further expand their shares compared to the previous year.

"Local monopolists can still secure high market shares in their region. In addition, there is systematic prevention of competition in the downstream charging market. This is also evident in the inflated prices for charging at public stations for e-mobilists," says Markus Adam, chief legal officer of LichtBlick.

Only one provider enables non-discriminatory access to the charging infrastructure

The charging station is a so-called natural monopoly. The installation of charging points by various CPOs in close proximity is economically unfeasible due to the high hardware costs. For years, individual providers have therefore established themselves in the local markets, as the monopoly analysis shows. These monopolists are typically the respective local energy suppliers, who are corporately connected with the local power grid operator or are themselves power grid operators. New or smaller providers hardly have a chance here.

The local monopolists dictate the charging prices for third-party providers and e-mobilists and set the conditions at the charging points. Due to the lack of competition, they can enforce excessive prices for charging on the go. Additionally, they discriminate against third-party providers by demanding up to 88 percent higher fees for the use of the charging points compared to their own customers.

Exception in Access in Hamburg

An exception is made by the leading charging station operator in Hamburg, which offers all competitors non-discriminatory access to the charging infrastructure. This prevents price discrimination against new or smaller competitors.

Third-party providers must rely on the roaming model to offer their own customers a driving electricity tariff for charging on the go. However, in addition to the price for the driving electricity tariff of the roaming partner, this model also includes an additional (roaming) fee. As a result, the model is uneconomical for such providers and further ensures that no competition arises in the downstream driving electricity market. The consequence: Third-party providers are pushed out of the market in the long term.

Due to Monopoly Structure: Competition at the Charging Station is Crucial

"Even in the future, there will be no competition in the establishment and operation of public charging stations. Prices at public charging points could remain high in the long term. However, the transport transition demands affordable charging rates. Therefore, competition must be created in the downstream charging power market. This way, local monopolists can no longer dictate the driving electricity price, which is instead formed by the market. In the truck sector, this has already been introduced with the transmission model," Adam further notes.

With the model, every energy supplier receives the right to transmit their electricity to the charging stations. In return, the operator receives a usage fee for the installation, operation, and maintenance of the charging station, which also allows for a reasonable return on employed capital. Thus, prices are no longer effectively set by the local monopolist, rather by the market. Excessive costs cannot be enforced in competition. The charging infrastructure is (co-)financed through usage fees and thus independent of government funding.

The Federal Ministry for Digital and Transport, the Autobahn GmbH of the Federal Government, and the National Centre for Charging Infrastructure have made the transmission model a prerequisite in the tender concept for around 130 unmanaged (E-)truck rest areas. The government is currently dealing with the model for the car sector as well: The Lower Saxony state government submitted a Bundesrat initiative at the beginning of December for consumer-friendly pricing of driving electricity, which particularly aims to examine the introduction of the transmission model. The initiative has since been passed on to the Economic Committee with lead responsibility.

The technical implementation of the model at charging stations is already possible. The transmission model has already been transferred into regular operations by LichtBlick eMobility GmbH and decarbon1ze.

More on the monopoly analysis can be found at www.lichtblick.de/monopolanalyse.

About the Study

The data basis for the monopoly analysis is the charging station register of the Federal Network Agency as of September 1, 2024. Only fee-based standard charging stations accessible to all driving electricity customers were considered for the evaluation.

Content automatically translated.
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