In a major shift, energy-based billing for public fast charging of electric vehicles (EVs) has replaced time-based charging in Canada, bringing about increased costs for EV owners. An update to Measurement Canada’s policy last February made this shift possible.
EVs that were once considered the future of transportation are now common on Canadian roads. This development comes with the need for accessible and efficient charging apparatus. The recent switch to energy-based billing, spearheaded by companies like Electrify Canada, is viewed as a more equitable and transparent method compared to time-based billing.
Under the new approach, owners of public charging stations can now choose to bill customers by time or kilowatt hours. Electrify Canada shifted to energy-based pricing for all its stations on January 9, with costs getting to 70 cents per kWh. Though this represents a major increase compared to time-based billing, it is still competitive with the cost of filling a gas-powered car.
Although home charging is still the most economical option at around 25-30 cents per kWh, fast chargers provide the convenience of quickly recharging an EV’s battery. Meanwhile, this convenience has a cost. Fast chargers have the capacity to deliver energy at a rate of 150 kWh per hour, but the cost of using these chargers is higher due because of factors like capital and operational expenditures, as well as profit margins for operators of charge points.
Despite the risen cost, energy-based billing is considered more lenient because customers are only charged for the energy they receive. This is at variance with time-based billing, where customers may be charged for time spent active at the charging station.
As Canada carries on its transition toward a greener future, EVs adoption is an essential part of this vision. Meanwhile, the switch to energy-based billing and the costs attached may affect the pace of this adoption. While the cost associated with charging an EV is still comparable to the cost of filling a gas-powered car, fast charging’s higher cost could deter potential EV buyers.
