EV charging cost cut

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The government's decision to slash tariffs for electric vehicle (EV) charging stations is welcome news for EV owners which could also significantly increase interest in the nascent market. While EVs have been around for several years now, and hybrids are common in many countries, inconsistent government support - often in the form of contradictory policies - has made EVs too expensive to buy and operate.

This includes a federal policy several years ago that gave favourable tax status to imported EV cars under a certain power capacity threshold, at a time when no major EV producer actually had a car that could meet the requirement. Similarly, in recent years, investing in EV charging facilities has been unnecessarily risky due to the low profit margin caused by price controls imposed by regulators not matching up with the cost of electricity. But these new prices could help significantly increase demand, as the cost per kilometre could decrease up to threefold, compared to petrol or diesel vehicles. Refining the EV charging station policy to make it more profitable for owners while also ensuring low prices for consumers would encourage more stations to open, which is critical if the government's goal of significantly increasing the number of EVs on the road is to be met.

A critical factor here is that range anxiety - fear of the battery running out at an inconvenient location - continues to be a major barrier for potential EV buyers. While costlier modern EVs have full charge range equivalent to similar fuel-powered cars on a full tank, more affordable models still have low range, which means potential buyers would want the reassurance of knowing they are always close to a charging station. Increasing demand for EVs would also bring long-term benefits through reduced fuel imports and less environmental costs from vehicle operations which, as the air quality in several cities has shown, would be a welcome respite for all.