is it still profitable to drive an electric car?

is it still profitable to drive an electric car?

€1,100 per megawatt hour (MWh) in recent weeks, compared to €85 a year earlierOf course, the attractive wholesale price of electricity in France, the result of the war in Ukraine and the absence of nuclear reactors in Francefeeds all fears, including those who were surprised about switching to electric cars: “Of course, it makes an impression, so it can question some people about the decision to switch to electric mobility” announced on this issue Mathias Laffont, director ” consumption and areas” in the French Electrical Union (UFE), the industry’s professional association.

At home or at work

Especially since at the same time, the Government increased on September 1 (for two months) to 30 cents per liter, against 18 cents previously, the fuel discount at the pump, and TotalEnergies added an additional 20 cents. Waving this red cloth, Is there a serious risk that current and future electric car users will find themselves caught out quickly, especially with the explosion in the price of electronics? Could the electric car market collapse?

In fact, the French should be protected internationally. The first reason is that “80% of additions are made at home and at work“, says Clément Molizon, head member of the National Association for the Development of Electric Transport (Avere-France) and whose opinion reports. Remember that at home, the tax shield of the State is used and that the increase is limited to 4%. The French government has also promised that this system will continue to be used in 2023 and that the increase would be “substantial and reasonable compared to (the) worst case scenario”i.e. doubled invoices.

Ionity remains cautious of adverse changes in electricity prices…© Ionity

An unstoppable calculation

In fact, this temporary government protection in terms of price freezes does not reflect the changes from 2024 but, nevertheless, the great development of the electric car in our country and in Europe should not dry up: ” Even if we had an increase in the level of electricity, there an amount that is very important. At home, we are about two euros per 100 kilometers, while in the heat we are between 12 and 16 €. depending on the performance of the vehicles”, argues Mr. Molizon. A serious argument, not to mention the reduced price of electricity during “hyper off-peak” hours …

Discovery in any case confirmed by sales of new 100% electric cars in France, plus registrations rose from 2% in 2019, to 12% in the first eight months of 2022. In addition, the official ban on the sale of new internal combustion vehicles in Europe in 2035 is another strong argument in favor of increasing EV power.

Street is paid at a high price

The same is not true for operators of public charging stations, on the street or near shops, and at different prices, with or without registration to simplify the bill. In Allego for example. The pan-European electric car charging network, which claims more than 28,000 charging sockets in Europe, has announced. kWh rates increased by 15 to 20% this month in several countries, including France, “due to rising electricity prices across Europe”. And if in Ionity, its competitor, no price increase is planned, the network remains vigilant, insisting that “the current rise in energy prices does not leave the operators”. A similar story at EDF, which has no plans to increase the prices of public charging stations operated by its dedicated subsidiary, Izivia.

Peugeot e-208, the queen of electric sales in France in 2022
Peugeot e-208, the queen of electric sales in France in 2022© Alex Krassovsky

Long term importance

For automakers, the lights are green in this area as last spring’s oil shock has attracted new buyers to models in their electric range. At Peugeot, The e-208 city car has risen to the top of electric car sales in France in the first half of 2022. “The importance of the switch to electric mobility must be evaluated for several years (…) The increase in the price of refills, as long as they continue to be controlled, do not change the economic logic of the switch to electric mobility. ‘electricity .” Carpe Diem.