Pakistan proposes reduced EV charging tariffs to boost electric vehicle adoption

ISLAMABAD: The shift to electric vehicles (EVs) is here as several countries like Pakistan have seen a significant shift towards EVs while governments are embracing the shift for environmental and economic reasons, including reducing carbon emissions, saving fuel, and availing incentives.

The government recently requested NEPRA to revise the electricity tariffs for EV charging stations. The recent proposal suggests that electricity can be provided at Rs. 23.57 per unit. And the cost of charging stations is expected to increase to Rs. 39 per unit, which is still half of the current price.

To manage the gap between the current and proposed tariffs, the Pakistani government proposed to use the cross-subsidy mechanism with the aim of ensuring that 30% of vehicles in Pakistan are converted to electric by 2030.

The government believes that these new tariff rates will help accelerate EV adoption. All applicable taxes and adjustments will be included in the revised rates.

The hearing on the petition was chaired by the NEPRA chairman. During the session, the case officer revealed that the government has proposed to reduce the base tariff from Rs. 45.54 per unit to Rs. 23.57 per unit. Currently, EV users pay up to Rs. 70 per unit for charging services.

The power division pointed out that the EV infrastructure in the South Asian country is still underdeveloped, with only eight charging stations out of 242 million operating across the country. After consulting stakeholders, the authorities decided to review the regulatory framework. The cabinet has approved a reduction in the base tariff for EV charging stations, which is aimed at making electric vehicles more affordable. The lower charging cost is expected to encourage more people to switch to electric vehicles.

Power division officials said that the commercial electricity tariff is around Rs. 94 per unit, though it is not fully implemented. Currently, consumers pay around Rs. 70 per unit. During the last year, only 94,000 electricity units used EV charging stations, with the total number of EV users in Pakistan being between 7,000 and 8,000.