Government Requests Review of Electricity Rates for EV Charging Stations to Promote Electric Vehicles

The government has requested the National Electric Power Regulatory Authority (NEPRA) to revise electricity prices for electric vehicle (EV) charging stations. The proposal suggests that electricity could be supplied at a rate of 23.57 rupees per unit. However, after tax adjustments, the cost of charging stations is expected to rise to 39 rupees per unit, which would still be a 45% reduction from the current price.

To address this cost difference, the government has proposed using a cross-subsidy mechanism. The aim of this initiative is to transition 30% of vehicles in Pakistan to electric by 2030. At present, charging stations are paying 45 rupees per unit, but after tax, the cost rises to 71.10 rupees per unit.

The government believes these revised tariff rates will help accelerate the adoption of electric vehicles in the country. All applicable taxes and adjustments will be included in the revised rates.

The request was heard under the chairmanship of NEPRA’s Chairman. During the hearing, the case officer revealed that the government has proposed reducing the base tariff from 45.54 rupees per unit to 23.57 rupees per unit. Currently, consumers are paying up to 70 rupees per unit for charging services.

The Power Division highlighted that Pakistan’s electric vehicle infrastructure is still underdeveloped, with only 8 charging stations operational across the country. To address climate change challenges, the government plans to open the market further and attract more investors into the electric vehicle sector.

Officials noted that the commercial electricity tariff is around 94 rupees per unit, although it is not fully implemented. At present, consumers are paying around 70 rupees per unit. Over the past year, charging stations used only 94,000 units of electricity, while the number of electric vehicle users in Pakistan ranges from 7,000 to 8,000.

This proposed change in electricity rates aims to encourage the growth of the electric vehicle industry in Pakistan by reducing operational costs for charging stations, thus making EVs more accessible to consumers.