Important for municipalities to evaluate their sales activities in the home charging market

The Swedish Competition Authority has surveyed how publicly owned energy companies have acted in the market for home charging of passenger cars. The analysis shows that, in most cases, these companies’ sales activities have been limited. Their actions also have not differed substantially from those of private operators. However, the investigation also reveals that the presence of municipally owned energy companies, in some cases, risks distorted competition and private companies hindered from entering the market. The Swedish Competition Authority is now urging municipalities to evaluate the sales activities of their companies.

This is stated in a report published today by the Swedish Competition Authority.

The survey is an analysis of how publicly owned energy companies operated in the market, with focus on years 2021 to 2022. It was carried out in light of ongoing electrification of the vehicle fleet and the shift away from fossil fuels.

“It is important for this young and rapidly evolving market for home charging of passenger cars to get the best possible conditions to develop. That is why we want to identify and address potential competition issues at an early stage for this growing market,” says the Director General of the Swedish Competition Authority, Marie Östman.

There are authorised electrical installers available throughout the country. The Swedish Competition Authority does not see indication of unmet demand in the market. However, the analysis shows that the entry of installation companies has been lower in municipalities where municipally owned energy companies have been active. There may be local circumstances that justify or have justified the presence of these municipally owned companies. However, there is a risk that their sales activities hinder the development of competition in the market. In conclusion, there is limited need for municipally owned actors that install charging points in the home charging market.

The investigation also shows that municipally owned energy companies have held high market shares – up to 80 per cent – in certain municipalities. The analysis indicates that pricing practices of these municipally owned companies may disrupt competition in local markets. Furthermore, prices become less transparent in case discounts and bundling of services are offered. Therefore, municipally owned energy companies should avoid indirect discounts and bundling of services.

“We urge municipalities to evaluate their companies’ sales activities in the home charging market, to ensure that they contribute positively to goals of public interest and do not hinder competition,” says Marie Östman.

For further information, please contact:

Leida Larkeus, Senior Economist, 08-700 15 03, leida.larkeus@kkv.se
Marie Strömberg Lindvall, Press Officer, 08-700 15 92, marie.stromberglindvall@kkv.se

Important for municipalities to evaluate their sales activities in the home charging market

For further information, please contact:

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