ISLAMABAD – The transition to electric vehicles (EVs) is here as several countries like Pakistan saw noticeable shift toward EVs while governments is embracing the shift for environmental and economic reasons, including cutting carbon emissions, saving on fuel, and taking advantage of incentives.
The government lately requested NEPRA to revise electricity rates for EV charging stations. Recent proposal shows electricity may be provided at Rs23.57 per unit. and the cost for charging stations is expected to rise to Rs. 39 per unit, still half than the current price.
To manage the difference between the existing and proposed tariffs, Pakistani government proposed using cross-subsidy mechanism as plan aims to ensure that 30% of vehicles in Pakistan transition 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.
A hearing on this request was conducted under NEPRA’s chairman. During the session, the case officer revealed that the government has proposed lowering the base tariff from Rs. 45.54 per unit to Rs. 23.57 per unit. Currently, EV consumers pay up to Rs. 70 per unit for charging services.
Power Division pointed out that EV infrastructure in South Asian nation remains underdeveloped, with only eight charging stations operating across the country of 242 million. After consultations with stakeholders, authorities decided to revise the regulatory framework. The Cabinet has approved a reduction in base tariffs for EV charging stations, aiming to make electric vehicles more affordable. Lower charging costs are expected to encourage more people to switch to electric vehicles.
Officials from Power Division shared that commercial electricity tariff stands at nearly Rs. 94 per unit, though it is not fully applied. At present, consumers pay around Rs. 70 per unit. Over the last year, only 94,000 electricity units were consumed by EV charging stations, with the total number of EV users in Pakistan ranging between 7,000 and 8,000.
