“Is EV charging really cheaper? Two smart policies to keep costs under control”

The Challenge

Let’s talk about EV charging costs—they can be surprisingly unpredictable. While electric cars are often marketed as cheaper to run than traditional fuel cars, that’s not always the case. Here’s the deal:

A car typically uses around 15-20 kWh per 100 km. If you’re paying €0.55 per kWh to charge, that’s €7.50 – €12.50 per 100 km. Depending on where and how you charge—and yes, how much of a “heavy foot” you have—it might rival or even exceed the cost of fueling a petrol or diesel car.

So, what’s causing these wide cost differences?

Low Costs: Charging at home is your best bet, especially with solar panels or dynamic tariffs. Think €0.10 to €0.30 per kWh.
Mid-Range Costs: Public slow chargers are generally around €0.50-€0.60 per kWh.
High Costs: Fast chargers are convenient but pricey, often €0.70-€0.80 per kWh. Add on fees for things like staying plugged in too long, and your costs can really add up.

For Companies, It’s a Balancing Act

Offering employees unlimited charging freedom can lead to skyrocketing bills. But restricting them too much? That’s no good either—imagine an employee stranded because they weren’t “allowed” to use a fast charger.

Why Many Current Approaches Miss the Mark

I’ve heard some pretty frustrating stories from employees at large companies:

Use a fast charger too many times? You get a warning.
Charge abroad? Another warning.
Exceed the limits? Costs might get deducted from your paycheck—if someone remembers to process it.

These rigid rules often annoy employees, create admin headaches, and don’t really encourage smarter charging habits. There’s got to be a better way, right?

Smarter Policies to the Rescue

With the right mobility policies, companies can manage costs while helping employees make better charging decisions. Here are two approaches I’ve seen work really well:

1. Offer a Mobility Budget

Give employees a budget to cover their EV charging and other commuting costs. They can decide how to use it:

Charging at home, on the road or at the office.
Installing a home charger.
Using public transport, like train tickets or bike allowances.

This puts the control in their hands. Occasionally using a fast charger? No problem—just as long as the majority of their charging is cost-effective. Those with access to home charging can use the budget to install a station, while others can stick to public slow chargers or other affordable options.

2. Charge for Excess Use Through Payroll

Instead of banning expensive charging options, set reasonable limits and let employees pay for anything above that. For instance:

Allow a certain number of fast charges per year; charge the extra usage.
Cover home charging but invoice international charging separately.
Pay up to a certain rate (e.g., €0.40/kWh), with the employee covering anything above that.
Pass on rotation fees above €5 to the employee.

These extra costs can be deducted through payroll or integrated into flexible benefits (eg. 13rd month). It’s simple, fair, and ensures employees can charge their EV wherever they need to without the company footing every cent.

Roeland Vanrenterghem, CEO Vaigo | Mobility Policy Expert
With years of experience in corporate mobility, Roeland has seen and analyzed hundreds of policies that influence employee commuting behavior. As CEO of Vaigo, he helps large enterprises simplify and manage those mobility policies, making sustainable choices effortless for both HR teams and employees.