Context 2: THE EUROPEAN EV INFRASTRUCTURE MARKET

Extract A: Charging Up the Netherlands

The Netherlands has one of the densest networks of electric vehicle (EV) charging points in Europe. However, the premium segment—ultra-rapid DC chargers (above 150 kW) along motorways—is dominated by just a handful of operators. Four firms, including Fastned and Allego, control over 80% of these fast-charging locations. While the market has grown rapidly, critics argue that competition is limited, especially on the busiest transit routes.

In 2022 and 2023, wholesale electricity prices on the European exchange (EPEX) fluctuated significantly. However, consumer groups observed that retail prices for ultra-rapid charging rose rapidly in response to wholesale spikes but remained persistently high—or 'sticky'—long after wholesale spot prices returned to normal. The national regulatory authority does not cap charging tariffs, focusing instead on ensuring transparent pricing information at the terminal.

Extract B: The High-Power Charging Oligopoly

The infrastructure required to set up an ultra-rapid charging hub is immense. Grid capacity constraints mean that new entrants face delays of up to three years just to secure a high-voltage connection from grid operators. This raises the capital setup costs, cementing a highly concentrated, oligopolistic market structure where existing dominant firms enjoy massive first-mover advantages.

Industry analysts suggest that this high concentration leads to market interdependence. Direct price competition is rare; instead, firms engage in non-price competition, such as loyalty apps, subscription models, and coffee shop partnerships. In late 2023, an investigation revealed that despite falling wholesale power costs, the major four providers maintained almost identical peak pricing of €0.69 per kWh, raising concerns about tacit collusion or price leadership.

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