Major cut in electricity rate for EV stations proposed

The federal government has submitted a formal application to the National Electric Power Regulatory Authority (NEPRA), proposing a substantial reduction in electricity tariffs for EV charging stations in a move to promote electric vehicles (EVs) across the country.

The application suggests slashing the basic tariff by Rs23.57 per unit. The government has already announced a 44% reduced tariff for electric vehicle charging stations, aimed at making EVs more affordable and accelerating the transition to clean energy.

According to the government's proposal, this reduced tariff aligns with the targets set under Pakistan's Electric Vehicle Policy 2030, aiming to boost the adoption of electric vehicles by providing cost-effective charging solutions. The difference between the current and concessional tariff is expected to be covered through a cross-subsidy mechanism, ensuring that the financial burden does not fall on power distribution companies.

NEPRA has scheduled a hearing on February 12 to review and deliberate on the government's request. If approved, the concessional tariff will significantly reduce the operational costs of EVs, allowing travel expenses to drop by up to three times compared to conventional fuel-powered vehicles.