COMPETITION COUNCIL RECOMMENDS WAYS TO PROMOTE COMPETITION IN THE ELECTRIC VEHICLE CHARGING SECTOR

The Competition Council, after monitoring the electric vehicle (EV) charging sector, has issued recommendations to municipalities as well as the Ministry of Transport and Communications and the Ministry of Energy on how to promote effective competition and avoid possible negative consequences for consumers in the future.

The monitoring revealed that the development of the EV charging sector is significantly influenced by the actions and decisions of municipalities. This was also highlighted by market participants, who pointed out that in some cases municipalities or companies owned by municipalities may be entering the EV charging market on more favourable terms.

The Competition Council recommends that municipalities should assess the potential impact of their market participation on private undertakings, the market structure and consumers, and should not restrict competition or hinder the development of services that may be fostered by private initiative. For example, once the mandatory free service period has expired, municipalities should immediately select charging station operators through transparent tenders to allow private players to enter the market.

After analysing the specifics of municipal tenders, contract durations, economic benefit criteria, and other relevant data, the Competition Council experts observed that municipalities occasionally fail to evaluate impact on competition and the structure of emerging markets when setting these conditions and conducting tenders. To address these concerns, municipalities are advised to:

• ensure transparency by widely publishing information on ongoing tenders and their scope;
• consider splitting tenders into smaller lots where feasible, allowing more companies to compete in local markets;
• establish selection criteria for infrastructure operators that generate tangible benefits for consumers;
• set proportionate contract durations with selected operators;
• avoid automatic contract renewals without competitive tendering.

“Pro-competitive decisions can help ensure that, in the long run, market participants compete on equal terms to provide services under the best conditions, ultimately maximizing benefits for EV users,” states the monitoring report.

To support municipalities in organising high-quality tenders, the Competition Council recommends that the Ministry of Transport and Communications prepare best practices guidelines. Additionally, the Ministry is encouraged to establish a centralised information platform where information about municipal tenders in the EV charging sector would be publicly available.

Market participants identified the lengthy and costly process of connecting charging stations to the power grid as one of the biggest obstacles to the market expansion. In response, the Competition Council recommends that the Ministry of Energy evaluate possibilities to streamline this process, further accelerating the development of EV infrastructure in Lithuania.

During the monitoring, the experts of the Competition Council interviewed companies operating in the market, other interested parties, collected relevant information from all Lithuanian municipalities and the Ministry of Transport and Communications, analysed the requirements of the legal acts, the conclusions of market studies carried out in the sector by the competition authorities of the European countries, and the recommendations of the European Commission. In December 2024, the draft conclusions were sent to the stakeholders and were subsequently adjusted in the light of the comments and suggestions received.

The Authority will continue to pay attention to this developing sector and will assess draft legislation relating to it within its competence. The Competition Council may also make additional recommendations or initiate investigations in the event of suspicions of possible infringements of competition law.