Is driving electric cheaper? Why TCO isn’t enough — and why TCU gives the real answer
Is electric driving cheaper?
Why TCO is not enough and TCU gives thereal answer
Is electric driving really cheaper? Formany companies and drivers, that is an important question today. The answerdepends largely on how an electric car is used and charged in practice.
It is often said that driving electric ischeaper than driving a petrol or diesel car. But is that really true?
The honest answer is less black and white.In some situations, electric driving is indeed cheaper. In others, it is not.It all depends on charging behaviour, usage patterns and how costs arecalculated.
Why electric driving looks cheaper on paper
Recent figures show that the cost perkilometre of electric cars is often lower than that of fossil-fuel vehicles.Especially when drivers can charge at home, the difference can be significant.
But as soon as drivers become moredependent on public charging points or fast chargers, that picture can changequickly. In many cases, the cost moves closer to that of petrol or diesel — andcan sometimes even be higher.
And that is exactly where the problem lies:many comparisons focus only on energy costs.
The limitation of TCO
The total cost of a car obviously consistsof more than energy consumption alone. That is why companies often look atTotal Cost of Ownership (TCO).
TCO provides a more complete picturebecause it takes into account factors such as:
· purchase price
· maintenance
· insurance
· depreciation
· fuel or charging costs
This makes TCO a better method forcomparing vehicles.
However, TCO also falls short when it comesto electric mobility.
Why? Because TCO works with averages, whilereality can differ significantly from one driver to another.
From theory to reality: TCU
That is why another KPI is gainingimportance: Total Cost of Use (TCU).
Where TCO predicts what a car should cost,TCU shows what that car actually costs in day-to-day use.
TCU takes into account:
· where someone charges
· when charging takes place
· how many kilometres are driven
· which types of charging pointsare used
· which tariffs are paid
· which choices are made on theroad
As a result, two identical electric carscan ultimately have a completely different total cost.
The impact of charging behaviour on the cost of electric driving
Charging behaviour has a major impact onthe final cost of electric driving.
One driver mainly charges at home and keepscosts low. Another frequently uses public charging points or fast chargers andsees energy costs rise quickly.
Electric driving is therefore notautomatically cheaper.
It becomes cheaper when it is used in theright way.
When is electric driving cheapest?
In practice, electric driving isfinancially most attractive for drivers who:
· can charge at home
· can charge at work
· make conscious choices aboutwhen they charge
· limit fast charging wherepossible
Drivers who mainly depend on publiccharging points or regularly use fast chargers often see the financialadvantage decrease significantly.
The cost of electric driving is thereforedetermined not only by the car itself, but also by where, when and at whattariff it is charged.
Why TCU is crucial for companies and fleetmanagers
For companies and fleet managers, thisdifference becomes even more relevant.
Not because the technology worksdifferently, but because employees’ charging behaviour can vary significantly.A fleet of identical electric cars can therefore show major differences inactual usage costs.
Without insight into that behaviour, itbecomes difficult to keep total charging costs under control.
By making charging behaviour visible andadjusting it where needed, companies can reduce costs without having to changetheir entire fleet strategy.
From insight to action: the role of data in fleet management
For fleet managers, the story does not end with the decision to go electric. The real challenge only begins afterwards.
Without insight into:
· charging behaviour
· charging points used
· charging tariffs
· usage patterns
the actual cost of an electric fleetremains difficult to predict — and even harder to optimise.
That is why more and more organisations aremoving from static reporting to real-time insights into their fleet.
At Blossom, we help fleet managers make exactly that difference. By making charging behaviour, charging costs and usage patterns transparent, companies gain insight into their actual costs as well as concrete ways to optimise them.
Not through complex theoretical models orassumptions, but based on real-world data.
This enables companies to:
· keep charging costs underbetter control
· make more informed decisions
· guide employees towards moreefficient charging behaviour
· structurally optimise their EVstrategy
Frequently asked questions about electric driving
1. Is electric driving always cheaper?
No. The cost of electric driving dependsheavily on charging behaviour, the type of charging points used, the tariffspaid and the number of kilometres driven. Drivers who mainly charge at home orat work can generally drive electric more cheaply than those who frequently usepublic charging points or fast chargers.
2. What is the difference between TCO andTCU?
TCO (Total Cost of Ownership) calculatesthe total ownership cost of a car based on factors including purchase,depreciation, maintenance, insurance and energy.
TCU (Total Cost of Use) looks at what a caractually costs in practice, based on real usage and actual charging costs.
3. Why are public charging points often more expensive?
Public charging points, and fast chargersin particular, often apply higher tariffs than charging at home or at work.Frequent public charging can therefore significantly increase the total cost ofelectric driving.
4. When is electric driving financially most attractive?
Electric driving is generally mostattractive for drivers who can regularly charge at home or at work, makeconscious choices about when they charge and limit the use of more expensivefast chargers.
Conclusion: is electric driving cheaper?
Electric driving is not a simplecalculation.
It is not about one figure or one comparison, but about the combination of technology, usage, charging costs and behaviour.
TCO helps companies make the right choice when purchasing a car.
TCU determines whether that choice also pays off in practice.
And that is exactly where the difference is made today.
Discover the real cost of electric driving with Blossom
Want to know what electric driving really costs within your fleet?
With Blossom, you gain insight into charging behaviour, charging costs and usage patterns, so you can see not only where costs arise, but also where you can optimise.
Discover how Blossom helps you manage your electric fleet more intelligently and cost-efficiently.
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At Blossom, we believe that managing an electric fleet can be easier and smarter. That’s why we offer fleet managers an intuitive and reliable platform to effortlessly manage home chargers, charging cards and associated costs. No unnecessary complexity – just all the support you need to transition smoothly to a modern, sustainable fleet.
From invitation to installation
The Blossom platform starts by inviting employees who need a home charger or charging card. This process is completed in a few simple steps:
- The fleet manager enters the employee’s email address and they receive an invitation.
- The employee is guided to request their charging card and/or home charger on the platform.
- We arrange the installation appointment.
- The fleet manager can track each employee’s progress through the installation process.
This approach ensures a streamlined onboarding experience while keeping the process simple and transparent.
Full visibility and control
Once the home charger is installed and the employee is fully ‘on board’, Blossom provides a detailed overview of all charging sessions, costs and any reimbursements. This gives fleet managers the insights they need to effectively monitor and manage energy consumption and associated costs. Clear reports and a user-friendly interface make it easy to optimise charging costs and fleet usage efficiently.
Discover how Blossom makes fleet management easier
From onboarding and installation to managing charging sessions and costs, Blossom’s easy-to-use solution saves fleet managers significant time and effort throughout the entire process. Whether you’re setting up a new electric fleet or optimizing an existing one, we’re here to help.
Curious about how we can improve your fleet management?
Contact us and see for yourself!
Together, we can make electric driving easy and worry-free.
The electric revolution is in full swing. More and more companies are offering their employees electric company cars as part of their sustainability strategy. But this transition also raises new questions: How does home charging work? And what are the tax implications? A recent circular from the Belgian Federal Public Service for Finance (2024/C/77) provides answers. At the same time, Blossom demonstrates how companies can seamlessly integrate this into their policies.
A look at the tax guidelines
Imagine an employee charging their electric company car at home. Who pays for the electricity? And what does that mean from a tax perspective? This is exactly what the circular clarifies. A distinction is made between electricity supplied directly by the employer and electricity paid for by the employee and reimbursed afterward.
In the case of direct supply, for example, through a charging card or a charging station at the office, the costs fall under the fixed taxable benefit of the company car. However, if an employee initially pays for the electricity costs themselves, the reimbursement is considered a separate taxable benefit—unless it concerns professional travel expenses. For commuting, employers can reimburse part of the cost tax-free, up to a maximum of €490 per year in 2025. Private kilometers, however, remain taxable.
The circular also provides a special exemption to facilitate the transition to electric driving. If a charging station is equipped with a system that accurately records the electricity used for the company car, the employer may reimburse these costs without additional taxation. A fixed rate per kWh, known as the CREG tariff, can even be used, simplifying administration as long as the rules are followed.
Practice: simplicity versus complexity
While the circular provides clarity, practical challenges remain. How do you accurately register the company car’s consumption? How do you ensure that employees are not taxed on their charging costs? And how do you keep the entire process transparent and fair? This is where technology and smart solutions become essential.
Blossom addresses these challenges by offering companies comprehensive charging solutions that not only comply with tax requirements but are also practical, user-friendly, and future-proof.
Blossom: bridging the gap between regulations and ease of use
At Blossom, simplicity is key. Our goal is to relieve companies and their employees of both technical and administrative burdens. We start with a high-quality home charging solution: reliable chargers designed with the whole family in mind. An employee can charge their company car, while other family members can use the charger for their private vehicles. The smart system automatically records the electricity used for the company car.
But Blossom goes even further. Thanks to our Fleet Dashboard, employers have real-time insight into each employee’s consumption. This allows for effortless reimbursements based on the CREG tariff. Additionally, all our home chargers are equipped with MID-certified meters, ensuring the highest standards of measurement accuracy. This guarantees that every kilowatt-hour charged is correctly recorded.
By combining technology with tax expertise, Blossom perfectly aligns with the requirements of the circular. Reimbursements are processed smoothly, with no surprises for employers or employees. The result? Less administrative hassle, happier employees, and a company ready for the future.
A step forward in sustainability
The transition to electric driving is more than just a technical adjustment; it’s a step towards a more sustainable world. With solutions like those from Blossom, this transition becomes simpler, more feasible, and more attractive—not only for employers looking to become more sustainable but also for employees who want to switch to electric driving worry-free.
Blossom proves that the future of mobility can be green, smart, and user-friendly. Curious about how we can support your company? We’re ready to help you build an electric mobility policy that works for everyone.
Want to learn more? Check out the circular here: MyMinfin
At Blossom, we love simplicity, efficiency, and smart technology. Your charging card is the key to hassle-free charging, but how do you keep it in top shape? A few smart habits can help prevent damage and ensure you can hit the road worry-free.
How does your charging card actually work?
Inside your card, a small antenna and an RFID chip draw power from the charging station’s signal.
This signal activates the chip, which then sends a unique code: “It’s me, and this is my key.” Once the charging station recognizes your key, charging begins. No batteries are required. The system is lightning fast and super energy efficient.
But because the antenna and chip are delicate, it’s important to handle your card with care. Here are the biggest pitfalls and how to avoid them.
Biggest mistake: Leaving your card in “the storage compartment”
Many drivers leave their charging card in the car’s storage compartment, right next to their wirelessly charging phone. Big mistake! Wireless charging creates an electromagnetic field that can damage your card’s antenna. This is one of the most common reasons charging cards stop working.
Other risks to your charging card
- Physical damage: Your card isn’t designed to be bent or scratched. Store it in a secure place, such as a sturdy cardholder.
- Heat and moisture: Avoid extremes of temperature and humidity. Don’t leave your card in a hot car or expose it to water.
- Magnetic fields: Strong magnets can interfere with your card. Keep it away from magnetic clips or speakers.
Blossom’s tips for a happy charging card
- Keep it away from your phone: Never place your card near a wireless charger or in the same pocket as your phone. Use a dedicated cardholder instead.
- Give it a permanent home: Keep your card safely secure in a wallet or holder to prevent accidental damage.
- Keep it clean: Wipe it with a soft cloth to remove dust and grease.
- Protect it from the elements: Keep it dry and away from extreme heat.
What if your card stops working?
No worries! If your card stops working, just let us know. We’ll get you a new one in no time. Of course, prevention is always better than cure.
Charge with confidence, the Blossom way
At Blossom, we make things simple and seamless. Taking good care of your charging card will help you avoid unnecessary hassle and keep your charging experience as smooth as the rest of our solutions. Store it wisely and make sure you’re always powered up and ready to go.
Let’s keep it simple, smart, and seamless – just the way you like it!