Power Companies Expanding into EV Charging Sector

Victoria's largest energy distributors are planning to install kerbside electric vehicle chargers, saying this is a vital step toward achieving climate targets. However, their entry into the EV sector may disrupt competition in the growing market.

CitiPower, Powercor and United Energy have asked the Australian Energy Regulator for a rule change that would allow them to install public EV chargers in locations that currently lack sufficient private investment. This move would see them expand from their usual role of maintaining the electrical grid into the competitive infrastructure space.

At present, ring-fencing rules block regulated electricity networks from participating in competitive markets. These safeguards exist to prevent companies that control networks and hold customer data from gaining an unfair edge. The distributors argue that these rules are slowing down the rollout of public EV charging infrastructure, especially in rural and lower-income areas where private companies are not building fast enough.

Critics, including large energy retailers and EV charging companies, warn that allowing regulated networks into the market could stifle private investment. They are concerned these firms could use their infrastructure and internal access to undercut competitors, potentially reducing innovation and weakening investor confidence in a sector that is only beginning to grow.

This decision could have a major impact on how Australia handles its energy transition. With the government targeting a 43% emissions reduction by 2030 and aiming for net zero by 2050, rapidly expanding EV infrastructure is essential. At the same time, it is important to maintain fair and efficient markets. The energy regulator's decision, expected later this year, may set a precedent for how monopoly operators can take part in emerging green industries.

Government support has already encouraged EV uptake through tax exemptions introduced in 2023, which have increased car sales through salary-packaged plans. However, public charging remains a challenge. Many Australians live in apartments or houses without off-street parking, making reliable public chargers key to broader adoption.

Source: Australian Financial Review, Renew Economy, CitiPower, EnergyAustralia

Doga Sydney - Corporate Cuddles & Puppy Yoga

Take what you’re doing offline and circle back on team wellness because real team bonding happens with puppies, not PowerPoint. Give your team an event they’ll actually look forward to with Puppy Yoga!

We’ve got you covered with Corporate Cuddles and Puppy Yoga 🐶