The Pakistani government has proposed a significant reduction in electricity tariffs for electric vehicle (EV) charging stations to accelerate EV adoption in the country. The move aims to make charging more affordable, ensuring a smoother transition to electric mobility.
Proposed Tariff Adjustments for EV Charging
The government has requested the National Electric Power Regulatory Authority (NEPRA) to revise electricity rates for EV charging stations. Under the new proposal, the base tariff will be reduced from Rs. 45.54 per unit to Rs. 23.57 per unit. However, after incorporating taxes and adjustments, the final cost is expected to be Rs. 39 per unit. This marks a 45% reduction compared to the existing rate.
Currently, EV charging stations pay Rs. 45 per unit, but with taxes included, the cost rises to Rs. 71.10 per unit. The revision in tariff rates is expected to lower the financial burden on EV users and encourage greater adoption.
Cross-Subsidy Mechanism to Support EV Growth
To balance the difference between existing and proposed tariffs, the government has suggested implementing a cross-subsidy mechanism. This strategy aligns with Pakistan’s vision of achieving a 30% transition to electric vehicles by 2030. The reduced tariff structure is expected to attract more investments in the EV sector, enhancing infrastructure development and accessibility.
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NEPRA Hearing and Government Strategy
A hearing was conducted under NEPRA’s chairman, where the case officer confirmed the proposed reduction in base tariffs. The Power Division highlighted that Pakistan’s EV charging infrastructure is still in its early stages, with only eight operational charging stations across the country.
To address infrastructure gaps and tackle climate change challenges, the government plans to introduce policy reforms and market incentives to encourage private sector participation. Following consultations with key stakeholders, the Cabinet has approved the base tariff reduction for EV charging stations.
Current Electricity Costs and EV Usage in Pakistan
At present, commercial electricity tariffs in Pakistan stand at nearly Rs. 94 per unit, though not fully applied. Consumers typically pay around Rs. 70 per unit. Over the past year, total electricity consumption by EV charging stations was only 94,000 units, with an estimated 7,000 to 8,000 EV users nationwide.
Impact on EV Adoption and Infrastructure Growth
The new tariff structure is expected to reduce operational costs for EV charging stations, making electric vehicles a more viable option for consumers. By lowering electricity costs, the government aims to drive greater adoption of EVs, reduce dependence on fossil fuels, and contribute to environmental sustainability.
With the revised rates and improved infrastructure, Pakistan’s EV market is poised for significant growth in the coming years.
