Is GOFAST also increasing its prices?

A matter of electricity price, infrastructure costs and location

Our customers’ opinions on kilowatt hour prices differ. Although we have been proven to be one of the cheapest fast-charging providers in Switzerland, there’s sometimes talk of us profiteering, being a rip-off or having a maximum price policy on social media or in reviews. However, this is usually due to improper use of our systems, such as AC charging being used for several hours, or making the wrong choice of e-mobility provider, etc. There is no doubt, however, that fast charging costs more than it costs to use a wall box at home, and it’s now also becoming more expensive with rising energy prices. Three main factors determine the kilowatt hour rate at GOFAST: the electricity price, the construction and maintenance costs, and location – where and how attractive it is.

Electricity prices: energy isn’t free

One thing is clear: all forms of energy have a price because it has to be generated somewhere and then transported to the point of consumption. It’s worth noting that electricity was very cheap until recently.

Just a few years ago there was talk of an electricity glut that would flood the European market and sink prices due to cheaply produced coal-fired electricity. In addition, in the early days of electric cars, charging current was often provided free of charge, which created a distorted idea of the effective energy costs of getting around for some e-car drivers. In this sense, we are now experiencing somewhat of a correction with the increased electricity prices, which on the whole better reflect the mostly somewhat higher production costs for renewable energy.

What’s the deal with the output rate?

When buying electricity, there is an additional cost component for fast-charging station providers that private households do not usually incur. In addition to network usage costs, state taxes and the cost of the energy purchased, energy suppliers also charge a price for the highest output purchased in the billing period – the ‘output rate’. This compensates energy suppliers for allowing the purchase of a very high output at any time. Like the other costs, the output rate also varies from provider to provider and can be up to CHF 15 per kilowatt. When charging electric cars fast, this cost structure can quickly lead to relatively high costs, especially at small locations, as the amount of power required for charging is not that high, but is purchased at a very high output. This output rate then ensures that the electricity purchased by GOFAST is even more expensive than for our customers at home.

Electricity prices vary greatly depending on location and time of day

GOFAST currently buys the electricity flowing through the charging stations at most locations from the respective energy provider. Rates vary greatly from provider to provider, depending on network costs and production and procurement costs.

This means we might have to pay 40 centimes per kilowatt hour at one location and only 20 centimes at another. The size of the GOFAST fast-charging network allows us to smooth out this price difference across the different locations without having to fully pass it on to our customers. In addition, most fast-charging processes take place during the day, i.e. at high rates, while charging at home can often be done with cheap off-peak electricity overnight.

Fast-charging infrastructure is expensive

It may not seem so at first glance, but a functioning fast-charging station with outputs of sometimes over 300 kilowatts or more costs a lot of money. In addition to the costs for the charging stations themselves, we invest a lot in the power connection (often with a new transformer station to make high outputs available) and make structural adjustments. At bigger locations, we often also build a solar roof over the system. For bigger charging hubs with several charging stations, these costs can add up to over one million Swiss francs. After initial installation, there are ongoing costs for operation, maintenance and upgrades. While our business model is designed for the long term, it is mainly the investments that have an impact in the short term.

Location factors

Something that might be slightly less obvious is that GOFAST prices also vary depending on where a location is and how attractive it is. As highly frequented or urban locations with attractive places to go usually also have higher rental costs for parking spaces, the kilowatt prices are also slightly higher at these locations. Variable prices, which also reflect these factors, allow our customers to choose a location based on their needs, which is also reflected in the charging costs. For us as a provider, there is also the possibility of frequency regulation.

Conclusion

Public fast charging is in fact usually more expensive than AC charging at your wall box at home. However, this has little to do with short-term profit and much more to do with effective energy prices and the costs of setting up and maintaining the fast-charging infrastructure. The output price, which is generally not relevant for private households, has a major impact on electricity costs, especially in small locations. Electricity prices also vary greatly, depending on the local energy provider. Depending on this and how attractive a location is, GOFAST then sets slightly variable rates per kilowatt hour at each location. If you take all these factors into account, we believe that we set fair prices that are attractive for our customers and allow us to operate, develop and expand our locations successfully in the long term.