Power bills set to rise under plan for thousands of new EV chargers

Australian households could be slugged about $1 a year on their power bills to help fund thousands of new electric vehicle chargers under a proposal backed by the national energy watchdog.

The Australian Energy Market Commission (AEMC) has released a draft rule supporting a $40 million Federal Government program aimed at installing about 14,000 chargers in areas where charging infrastructure is lacking.

The Commonwealth would cover about 30 per cent of the cost, with electricity networks able to recover the remaining 70 per cent from consumers.

AEMC chair Anna Collyer said the commission believed the benefits of the program would outweigh the cost to consumers .

“The Commonwealth’s program is a targeted measure to help close the gap between the rising EV uptake and EV charging infrastructure,” Collyer said.

The chargers would be targeted at regional charging blackspots and high-density city areas where residents may not have access to off-street parking.

Private charging operators would get first opportunity to install chargers at identified sites.

Electricity networks would only step in as a “last resort” where private operators did not take up a site, while they would be required to provide chargers in regional blackspots.

The AEMC said the program was designed to improve access for people including renters and apartment residents while supporting the uptake of electric vehicles.

However, the proposal means electricity consumers would help fund the rollout regardless of whether they own an EV.

The draft rule is not a green light for electricity networks to roll out chargers wherever they choose.

It applies only to the Federal Government program, which is scheduled to run until June 2029.

The AEMC is also separately considering a broader proposal from Energy Networks Australia that would allow electricity distributors to install, own and maintain kerbside EV chargers as an ongoing regulated service, with the costs potentially recovered from consumers through regulated charges.

That proposal is separate from today’s decision and is still being considered, with the AEMC planning to publish a draft determination by May 2027.