Government Plans Significant Reduction in Electric Vehicle (EV) Charging Costs

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Sameer

The government has asked NEPRA to revise electricity rates for EV charging stations, proposing a base tariff of Rs. 23.57 per unit. However, with tax adjustments, the final cost is expected to be Rs. 39 per unit, still 45% lower than current rates.

To bridge the gap between existing and proposed tariffs, the government suggests a cross-subsidy mechanism, aiming for 30% EV adoption by 2030. Currently, charging stations pay Rs. 45 per unit, which rises to Rs. 71.10 per unit after taxes.

Read more: Electric vehicles for umrah pilgrims

During a NEPRA hearing, officials revealed that the base tariff could drop from Rs. 45.54 to Rs. 23.57 per unit, making EV charging significantly cheaper. The Power Division highlighted Pakistan’s underdeveloped EV infrastructure, with only eight charging stations nationwide. To boost investment and tackle climate change, the government plans to expand the market.

The Cabinet has approved lower tariffs to encourage EV adoption and make electric vehicles more affordable. At present, commercial electricity tariffs stand at Rs. 94 per unit, but consumers pay around Rs. 70 per unit. In the past year, 94,000 electricity units were consumed by EV stations, serving 7,000–8,000 EV users across Pakistan.

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