The federal government has requested the National Electric Power Regulatory Authority (Nepra) to reduce the base tariff for Electric Vehicle Charging Stations (EVCS) by Rs23.57 per unit. Additionally, it has proposed removing the capped margin of Rs24.44 per unit, allowing investors to set margins based on market dynamics.
Filed under the Regulation of Generation, Transmission, and Distribution of Electric Power Act of 1997, this motion aims to accelerate the development of EV charging infrastructure. The government emphasized that EVs provide a cleaner, more efficient transportation alternative, reducing reliance on imported fuels and mitigating environmental degradation. However, high energy prices and economic challenges have hindered the sector’s growth.
Currently, EVCS falls under the commercial category with a base tariff of Rs45.5 per unit, including a Rs10 cross-subsidy. After taxes and adjustments, the effective tariff reaches approximately Rs71 per unit. Nepra also set a margin of Rs24.44 per unit, bringing the maximum tariff to around Rs95 per unit. While EV users still benefit from cost savings compared to conventional fuels, the high tariff limits returns on investment for operators, slowing infrastructure expansion.
The government’s proposal seeks to rationalize the base tariff, fostering industry growth and supporting Pakistan’s 2030 EV policy targets. The difference in tariffs will be managed through a cross-subsidy mechanism, with existing taxes and adjustments remaining unchanged. A public hearing on the motion is scheduled for February 12, 2025.
 to reduce the base tariff for Electric Vehicle Charging Stations (EVCS) by Rs23.57 per unit. Additionally, it has proposed removing the capped margin of Rs24.44 per unit, allowing investors to set margins based on market dynamics.){kind=link}