State threatens to step in if regulator and networks fail to remove EV charging “handbrakes” and sort out tariffs

The Victorian Labor government has thrown down the gauntlet to the energy regulator and network companies to guarantee ready access to smarter and cheaper public electric vehicle charging, as part of a new regulatory to-do list to support the “explosive growth” of EVs in the state.

In a Charging Regulatory Statement published on Thursday, Victorian energy minister Lily D’Ambrosio outlines four priority objectives to deliver accessible, affordable, reliable and safe electric vehicle charging as uptake starts to take off.

The minister says the state has already seen an almost tenfold increase in EV sales since the release of the Labor government’s ZEV Roadmap, taking the number of electric cars on Victorian roads to more than 100,000.

More effective than any government subsidy has been the nearly two months-old conflict in Iran, which has put a rocket under EV sales by underscoring the increasingly volatile cost of fuelling combustion engine cars.

But as consumers turn to EVs in their droves, the policy and regulatory focus has turned to the national charging infrastructure, which is well behind where it needs to be for the next phase of growth in electric mobility – not least for would-be EV drivers without off-street parking.

“The Victorian government has an important role to play in removing some of the key obstacles in the way of [the] expansion of EV charging infrastructure that might otherwise act as ‘handbrakes’ on the explosive growth in EVs,” D’Ambrosio says in an introduction to the statement. 

“This is why I’m releasing this statement, to set out new steps that I’ll be taking to unlock the rollout of more EV chargers, and drive the transition to EVs to save households money.

“We’ve heard from industry that there’s a range of actions government can take to remove barriers to the EV transition, by making regulatory improvements relating to better network visibility, faster and cheaper connections, better network tariffs, fairer rules and processes for connections, and speeding up the rollout of vehicle-to-grid.”

On network tariffs, the government says it wants to see price settings and network-led trials that reward public charging during the day – when solar generation is abundant – and to set stronger price signals during evening peaks, to discourage charging when electricity demand is already high.

If appropriately designed tariff trials for public EV charging are not delivered by the Australian Energy Regulator in its final determinations later this month, then the government says it will step in and regulate to ensure better prices and to support the rollout of public EV charging infrastructure.

Controversial demand tariffs are also in the energy minister’s sights, based on reports that they are significantly increasing the cost of operating EV charging sites – particularly in the case of ultra‑rapid chargers, where a single high‑powered session can trigger high demand charges. 

“The Victorian government will implement regulatory reforms to ensure eligible CPOs [charge point operators] are not unfairly paying for demand charges, and that tariff settings do not discourage investment in larger, higher‑capacity charging sites,” the statement says. 

“Avoiding tariff structures that penalise larger sites will prevent a fragmented network made up of smaller, under‑sized sites and instead support the delivery of a robust, future‑ready charging network across Victoria.”

To support the timely rollout of more public and kerbside EV charging infrastructure, another of the statement’s four priorities, D’Ambrosio says regulatory reforms being implemented this year will require distribution networks to provide data needed to support new connections.

“We’ve also heard from industry that more action is needed to ensure that when a company wants to install a new EV charger, it can be done at a reasonable speed and price, through a consistent and fair process,” the statement says.

“To further progress this, the Victorian government will take regulatory action to ensure distribution businesses publish data on connection processes, timeframes and costs, and report publicly on their performance against these metrics. 

“We anticipate this will provide greater visibility of whether or not further regulatory action is needed to ensure connections are not unreasonably delayed or expensive.”

Finally, the government has also initiated a governance review of the Victorian Service and Installation Rules (VSIR), to improve transparency and fairness, ensure clearer pathways for considering consumer energy and EV charging needs and maintain essential safety requirements. The review will be completed by July.

The statement from Victoria comes in the same week that Energy Networks Australia (ENA) formally requested changes to market rules to allow poles and wires companies to install, own and maintain on-street chargers on existing distribution network assets.

“By enabling distribution networks to install, own and maintain kerbside EV charging using existing infrastructure – such as power poles – we can deliver faster, more affordable, and more widespread access to charging where people need it,” the ENA says in its submission to the Australian Energy Market. Commission (AEMC).

“This is about fairness, affordability, and making the energy transition work for everyone.”

In their own rule change request, the group led by Nexa Advisory is asking the AEMC to write stronger ring-fencing safeguards into the rules, to prevent what they see as increasing regulated network creep into what should be competitive markets. 

“Tightening the process is critical to preventing the misuse of monopoly network powers and protecting energy consumers from gold plating and cost blowouts,” said Nexa Advisory chief Stephanie Bashir in March.

To this end, Bashir says Nexa “wholeheartedly endorses” this week’s regulatory statement from the Victorian government.

“This is a significant leadership moment, and … should be an example for other states and territories, and the Commonwealth,” Bashir said on LinkedIn on Thursday.

“If we get this right, through the EV market, Australia can build a world-class charging network quickly, efficiently and at least cost to consumers.

“If we get it wrong, we risk embedding higher costs into the system for decades-paid for by every electricity user, whether they drive an EV or not.”

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