| Year | VoltCharge PAYG | GridPower PAYG | ElectroDrive PAYG | Wholesale Electricity Cost* |
|---|---|---|---|---|
| 2012 | 35p | 33p | 34p | 12.0p |
| 2013 | 38p | 35p | 36p | 11.5p |
| 2014 | 42p | 38p | 39p | 10.8p |
| 2015 | 45p | 41p | 42p | 10.0p |
| 2016 | 49p | 44p | 45p | 9.2p |
| 2017 | 53p | 47p | 48p | 8.5p |
| 2018 | 57p | 51p | 52p | 7.8p |
| 2019 | 61p | 55p | 56p | 7.0p |
| 2020 | 66p | 59p | 60p | 6.2p |
| 2021 | 71p | 63p | 64p | 5.5p |
| 2022 | 76p | 67p | 68p | 4.8p |
*Wholesale Electricity Cost – the average baseload wholesale electricity price allocated per kWh delivered.
Electra Group, the parent company of VoltCharge, reported a substantial rise in operating profits following its acquisition of the smart route-planning and billing app "AmpFlow" in late 2019. This merger consolidated VoltCharge's market share in key transit corridors to a dominant 32%. Operating profits for VoltCharge's highway rapid-charging division reached £142 million for the financial year ending 2022.
The Chief Executive commented: "By integrating AmpFlow’s proprietary pre-booking algorithms with VoltCharge's physical infrastructure, we have locked in premium fleet contracts. This technology-retail synergy allows us to offer bundled premium subscriptions, securing steady high-margin revenue streams as EV adoption accelerates."
The national infrastructure regulator is preparing to intervene in the electric vehicle charging market, proposing price caps on standard pay-as-you-go (PAYG) tariffs. The investigation highlighted 'exploitative pricing of captive motorway travelers.' The regulator estimated that a price cap could save EV drivers up to £180 annually.
The regulator stepped in because PAYG charging tariffs have more than doubled over the past decade. This upward trend persisted despite charging network operators benefiting from a persistent, long-term decline in wholesale electricity contract costs. Many drivers have limited choice when charging on long journeys, with over 65% of regional highway chargers operated solely by VoltCharge.
A spokesperson for the regulator stated: "A lack of local competition and high consumer search/transaction costs on long journeys have allowed VoltCharge and other key players to systematically increase retail margins without facing competitive pressure. Over 75% of non-subscription drivers simply use the nearest available rapid charger regardless of price, creating highly price-inelastic demand pools."
Discuss one likely reason for the rise in Electra Group's profit (Figure 2, Extracts B and C). Use a cost and revenue diagram to support your answer.
