Despite the steady expansion of the electric mobility transition in Belgium, a new challenge emerges that could have significant consequences for Charging Point Operators (CPOs), as well as chargers in private company car parks or interparkings, among others.
It concerns local levies on public chargers, particularly in Brussels, which is currently the epicentre of this controversy.
“Suddenly, municipalities have the freedom to impose taxes on what they deem relevant, in this case, electric vehicle (EV) charging stations,” asserts Philippe Vangeel, Chief Operating Officer of EV Belgium.
In an interview with Mobility Portal Europe, the COO explains: “For the CPO, this is an unforeseen cost in the concession model they agreed upon with the higher level of government.”
What does this mean?
Operators must absorb the additional tax cost and incur losses, or increase charging prices, an option that contradicts the concession agreement.
This conflict not only affects the economic viability of existing installations but could also discourage the future expansion of infrastructure.
What amount is being referred to? According to local reports, municipalities have agreed on a rate of 125 euros per plug or 250 euros for a station with two “refuelling” points.
Currently, this is set to be implemented next year, “so there is still time to withdraw it,” notes Vangeel.
Meanwhile, other areas of Brussels, such as Sint-Gillis and Ixelles, have already introduced taxes of 180 euros per point annually in the former and 281 euros in the latter.
This situation has elicited a negative reaction, with some operators, like EnergyVision, choosing not to install more charging stations.
Moreover, the company has decided to move its headquarters from Brussels to Ghent, in the Flemish region.
This brings about a second problem: the potential for other regions to consider implementing similar measures, creating a domino effect across the country.
“This could certainly serve as an inspiration for other mayors and cities, which is something we wish to avoid,” emphasises the representative from EV Belgium.
Additional fees not only increase the cost of installing new stations but could also slow the pace of expansion needed to meet the growing demand for electric vehicles.
The association argues that the fundamental principle should be to facilitate access to quality charging infrastructure and support market players.
To mitigate these negative impacts, it is suggested that any taxes imposed on public chargers should be fair and reasonable.
This involves equity in the fee, meaning the rate should be related to actual use by the end customer (kWh charged) and effective use of public space, avoiding costs that do not reflect actual usage.
It also calls for a uniform system across the concession area to avoid disparities and confusion among operators.
It is recommended that fees should not be applied retroactively, as modifying existing concession contracts could severely impact CPOs.
In the meantime, all charges, taxes, and other costs should be fully reflected in the price.
“It is too early in the transition but we are not necessarily against the tax if the conditions mentioned are met,” he states.
The challenge of local levies on charging points is a clear reminder of the need for effective coordination between different levels of government and stakeholders in the electric mobility sector.
As Brussels faces the possibility of reversing this decision, the sector remains hopeful that conditions will be respected to ensure a stable and conducive business environment for infrastructure expansion.
But is it legal to impose additional fees?
According to the outgoing Brussels Finance Minister, Sven Gatz, this intention, despite municipal autonomy to levy local taxes, is contrary to the ordinance of 1 December 2022.
This stipulates that municipalities must refrain from imposing new taxes or increasing existing ones if they affect the economic development of the region.
In exchange for this commitment, local authorities can rely on regional financial support from the Fiscal Compensation Fund.
The matter is currently under legal investigation by the Brussels Minister of Employment, Training, Local Authorities, Digital Transition, Animal Welfare, and Family Allocations, Bernard Clerfayt.
