After years of growth and following a surge in its profits, EDF announced that electricity prices would soon decrease. This will help reduce the cost of charging electric cars.
With sales progressing more slowly than in recent years, electric cars seem to have reached a plateau. Despite prices remaining high, even though they are starting to decrease with the arrival of more affordable models, and range still being a concern, although this is also improving rapidly, the slowdown is being felt by all automakers. However, electric vehicles have not yet had their final say. And some good news could help regain their appeal: the planned decrease in electricity prices!
This is what EDF announced a few days ago, as the company’s first-half results were excellent: a 21% increase in net profit to €7 billion. This was mainly due to a recovery in nuclear and hydraulic production.
If electricity bills have been steadily rising in recent years, the upward trend seems to be over. Starting with the planned 1% increase on August 1st, 2024, which has been completely canceled. It appears that a decrease is planned for the coming months as explained by EDF’s CEO in Le Parisien. Contract negotiations for electricity in June were at €73 per megawatt-hour, compared to €146 at the same time last year.
This news is reassuring for electric vehicle owners, who are estimated to recharge 80% of the time at home, according to recent surveys. They will see their bills decrease, and consequently, the cost of charging will also go down. This may widen the gap with traditional vehicles and their high fuel prices. Currently, the price of electricity is €0.25 per kWh, and €0.20 per kWh during off-peak hours. Charging a Tesla Model Y with a 60 kWh battery at home costs between €12 and €15 for a full charge covering 455 km.
It remains to be seen exactly when these prices could decrease. Finance Minister Bruno Le Maire promised a 10-15% reduction in electricity rates in February 2025. However, this is contingent on geopolitical stability and moderate winter conditions.
Overall, the anticipated drop in electricity prices will benefit electric vehicle owners and contribute to the growing appeal of electric cars. This aligns with the global shift towards sustainable mobility and reducing carbon emissions.