Soldato
- Joined
- 19 Oct 2002
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The growth of the UK’s EV charging network could be stunted by significant and unexpected cost hikes that mean many charging hubs aren’t currently turning a profit.
Ian Johnston, CEO of charger operator Osprey, told Autocar that “we are nowhere near profitability” because of skyrocketing electric grid costs.
Dora Clarke, Osprey’s head of external affairs, said the standing charge paid by the company for a “typical” hub in the Midlands with eight chargers has increased over the past three years from £99 per year to more than £8600. Osprey operates 56 such hubs nationally.
Osprey is not alone in facing this problem. According to a new report published by EV charging body ChargeUK, standing fees have increased by 462% for rapid-charging hubs (those whose chargers put out 50kW or more) and 389% for slow-charging hubs (sub-50kW) over the past two years.
ChargeUK attributed the hike in fees to energy regulator Ofgem’s Targeted Charging Review, which means businesses now have to pay for the capacity of the energy they could use, rather than what they actually draw. As a result, charging companies are “penalised” for building new hubs that are rarely used to their full extent, said ChargeUK.
Crazy numbers!
Ian Johnston, CEO of charger operator Osprey, told Autocar that “we are nowhere near profitability” because of skyrocketing electric grid costs.
Dora Clarke, Osprey’s head of external affairs, said the standing charge paid by the company for a “typical” hub in the Midlands with eight chargers has increased over the past three years from £99 per year to more than £8600. Osprey operates 56 such hubs nationally.
Osprey is not alone in facing this problem. According to a new report published by EV charging body ChargeUK, standing fees have increased by 462% for rapid-charging hubs (those whose chargers put out 50kW or more) and 389% for slow-charging hubs (sub-50kW) over the past two years.
ChargeUK attributed the hike in fees to energy regulator Ofgem’s Targeted Charging Review, which means businesses now have to pay for the capacity of the energy they could use, rather than what they actually draw. As a result, charging companies are “penalised” for building new hubs that are rarely used to their full extent, said ChargeUK.
Crazy numbers!