What was that Ms Gillard said about not wanting to “gold plate” our electricity networks? The Australian Energy Market Commission (AEMC) released a warning in December that electric cars will cost a lot more than just the purchase price and the electricity:
Electric vehicles in particular are another new “appliance” which is set to place new demands on Australia’s power system. This review has found that each electric vehicle could impose additional network and generation costs from $7500 up to $10,000 per vehicle over the 5 years from 2015 to 2020 in the absence of appropriate pricing signals and efficient charging decisions.
Who pays for the extra generation capacity? You do.
AEMC Chairman, John Pierce, said today that each electric vehicle could result in additional generation and network costs that, under current market arrangements would be shared by all consumers.
AEMC recommends several ways to split up the pricing, sort our metering so houses can figure out what was “the car” and what was “the house”. Me, I recommend we charge the EV owners the real cost, and let the free market do what it does best.
The AEMC last word — it’s easy to sell natural gas cars: