Monday, May 26, 2025

Nepra approves Rs23.57/kWh tariff for EV stations

The National Electric Power Regulatory Authority (Nepra) has approved a revised electricity rate of Rs23.57 per kilowatt-hour for electric vehicle charging stations (EVCS), allowing them to add a market-based margin on top.

In its new ruling under the NEPRA (Review Procedure) Regulations, the regulator responded to the federal government’s request for a tariff review.

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Previously, EVCS were billed under the A-2(d) tariff by distribution companies (DISCOs) without being subject to monthly fuel cost adjustments (FCAs). This approach remains unchanged in the latest decision.

This updated rate represents a significant reduction, 45% down from the prior Rs45.55/kWh. With taxes and other adjustments, the effective rate now stands around Rs39.70/kWh, compared to the earlier cost of Rs71.10/kWh.

Nepra has forwarded the decision to the federal government, which is required to notify it in the official Gazette within 30 days. If it fails to do so, Nepra will issue the notification itself under the relevant law.

This revised determination replaces a paragraph from a previous April 15 decision, adjusting the financial approach to better reflect current policy.

However, not everyone at Nepra agrees. Member (Technical) Rafique Ahmed Shaikh dissented from the majority view.

While he supports the adoption of electric vehicles as part of Pakistan’s push for sustainable energy, he opposed shifting the subsidy burden to all electricity consumers.

“I must respectfully dissent from the majority decision to impose the financial burden of subsidising EV charging stations on the general consumer base,” he said.

He argued that incentives for specific sectors should come from targeted funds like government grants, not from higher costs for everyday consumers.

Shaikh emphasized that any financial support should help low-income households and that a fair pricing system should reflect actual service costs rather than broadly funding business incentives. “For these reasons, I respectfully dissent from the majority decision as a matter of principle,” he concluded.