Should governments regulate EV charging prices?

June 24, 2025

From the newsletter

Electric vehicle charging companies in South Africa collect up to three times the residential cost of electricity. In Kenya, they charge more than double the domestic power tariff. This trend is reflected in many African countries, raising questions over whether governments should now regulate charging prices in the same way they regulate fuel prices.    

  • The majority of African countries, including South Africa, Kenya, Uganda, Ethiopia, Zambia and Namibia regulate fuel prices, fending off price collusion by sellers. 

  • On the other hand, building out charging networks is expensive. If governments made it unprofitable, EV owners and drivers would be the losers as fewer charging stations would be built.

More details

  • In the 2024/2025 financial year, the cost of one kWh of electricity for residential prepaid customers in South Africa’s biggest metro — Johannesburg — starts at R2.72 ($0.15) for the first 350 kWh of consumption. For the next 150 kWh consumption, the rate increases to R3.12 ($0.17). For consumption over 500 kWh, the rate is R3.55 ($0.2) per kWh.

  • While energy charges can vary greatly from municipality to municipality, these tariffs are generally much cheaper than public EV charging tariffs. In June 2025, the most common tariffs at fast DC charging stations in South Africa were R7.35 ($0.41) at GridCars and Chargify stations, and R7 ($0.39) at Rubicon chargers.

  • In Kenya, Drivelectric and EVChaja charge about Ksh58 ($0.41) and Ksh53 ($0.40) per kWh at their DC fast charging stations. This is more than double the average domestic electricity tariff, which is currently at about Ksh26 ($0.2) per kWh. All grid-tied charging companies in Kenya get electricity from the national grid at the same tariff. 

  • While most African countries have stayed away from setting charging prices, Tunisia was an outlier. The country has been regulating EV charging prices until June 2025 when it announced it would end the policy. “Charging tariffs will be unregulated and not fixed by the government,” said Fethi Hanchi, the Director General of Tunisia’s National Agency for Energy Management (ANME). 

  • While EV charging companies in Africa set their prices based on a mix of technical, economic, and strategic factors, the biggest factor remains the cost of buying electricity from utilities. Other considerations include charger type and speed, running costs, consumer behaviour, business strategy among others.

  • Supporters of governments stepping in to regulate EV charging prices believe regulation can prevent price gouging, especially in areas with limited charging options, ensuring EV adoption remains accessible to a broader population. Predictable pricing, they argue, also helps fleet operators, utilities, and investors plan long-term, encouraging infrastructure development and grid integration.

  • Critics however argue that price caps may discourage private companies from entering the market or upgrading infrastructure if returns are too low. Further, overregulation can stifle competition and delay the rollout of advanced technologies like ultra-fast charging or smart grid integration. 

  • The debate over which policy direction African governments should take is coming at a time when the continent’s EV charging market is growing fast, with its value estimated at $31.93 million in 2022. It is projected to reach $256.53 million by 2030, according to Next Move Strategy Consulting. This growth will be mainly driven by a handful of major EV markets, particularly South Africa, Morocco, Egypt and Ethiopia. 

Our take

  • To balance affordability with infrastructure growth, governments should co-invest in charging networks or offer concessional land and electricity rates to operators who commit to fair pricing and wide coverage. Rwanda is already succeeding through this approach. 

  • Should the prices of charging at public charging stations continually increase, more people will choose to charge their vehicles at home where they will enjoy the lower residential tariffs. however, these chargers are way slower than public chargers. 

  • Regulators should require charging companies to disclose pricing structures and justify markups over grid tariffs. This would empower consumers and help policymakers assess whether intervention is needed.