Do Rising Electric Rates Spell Disaster for Electric Vehicles?

The growing electric vehicle (EV) marketplace has encountered rising electricity rates due in part to the recent U.S. inflationary period, resulting in lower satisfaction with home charging, according to the J.D. Power 2023 U.S. Electric Vehicle Experience (EVX) Home Charging Study^SM . While Level 2 portable and Level 2 permanently mounted charging stations are utilized by 83% of all users, their satisfaction with the cost of charging declined from the 2022 study by more than 30 points in each segment.

Why Should Utilities Care?

While automakers and OEMs may have the most obvious desire for EV adoption, utilities are key stakeholders in the electrification process. In fact, as providers of electricity, utilities are intimately involved in the home and public charging aspects of EV ownership for the life of the vehicle- much longer than a dealer or OEM. Improving customer experience and ultimately increasing revenues should be top of mind for all electric providers.

What Can Utilities Do?

Customers are looking to utility companies to help them manage rising costs. As electricity rates increase, educating EV owners becomes more critical. Just 51% of EV owners say they are knowledgeable about utility company programs for charging their vehicle at home, despite many utilities offering incentive and cost reduction programs.

With an ever-expanding suite of tools and incentives at their disposal, it should be easier than ever for utilities to connect customers with cost saving solutions. However, customer communication remains a key component of satisfaction. Clear, consistent customer communications can build trust, loyalty, and satisfaction among customers, in addition to positioning a utility as an authority on the topic. Utilities that are committed to supporting the electrification initiative should consider communications around:

• EV start-up costs such as charger installation
• Time of Use (ToU) rate education
• Available rebates and/or incentives

Utilities are positioned to play a key role in the success of both EV adoption and EV customer experience. As the EV marketplace continues to grow, brands that help owners take advantage of these offerings will be in a much better position down the road.

From infrastructure planning to residential, commercial and industrial marketing, the J.D. Power E-Vision initiative has the data, intelligence, software and tools that utility providers need to build, manage and market the vital electrification efforts that will positively impact the EV ecosystem.