Rs23.57/kWh tariff for EV charging stations approved

The National Electric Power Regulatory Authority (Nepra) has allowed electric vehicle charging stations (EVCS) to charge Rs23.57 per kilowatt-hour (kWh) plus a market-determined margin from electric vehicle (EV) owners.

The power regulator issued a decision under NEPRA (Review Procedure) Regulations regarding the motion and policy guidelines filed by the federal government for rationalisation of the tariff for EVCS.

Earlier, the power regulator had decided that the EVCS would provide "charging service" to electric vehicles as per the applicable tariff for EVCS. The EVCS was to be billed by distribution companies (DISCOs) under the A-2(d) tariff, with monthly fuel cost adjustments (FCAs), whether positive or negative, not applicable on EVCS.

Now, in its fresh decision, the regulator has reiterated that EVCS shall provide charging services to electric vehicles at Rs23.57/kWh, plus a margin to be determined by market forces. The EVCS will continue to be billed by DISCOs under the A-2(d) tariff, and monthly FCAs, whether positive or negative, shall remain inapplicable to EVCS.

Earlier, Nepra had reduced the base tariff for EV charging stations by 45% to Rs23.57/kWh. The regulator approved this reduction from the previous Rs45.55/kWh. After accounting for taxes and adjustments, the effective rate is expected to drop to Rs39.70/kWh—a significant decrease from the existing post-tax cost of Rs71.10/kWh.

The power regulator has communicated the decision to the federal government for notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. This must be done within 30 days from the intimation of the decision. In the event that the federal government fails to notify the tariff decision within the specified period, the authority itself will notify it in the official Gazette under the same provision.

The authority observed that its decision dated April 15, 2025—issued via No NEPRA/RJADG (Tariff)TRF-100/EV/5469-72 in the matter of the motion and policy guidelines filed by the federal government for rationalisation of tariff for EVCS — required review. Accordingly, the authority revised the decision, replacing paragraph 28(19) of the original order with the new determination.

However, Member (Technical) Rafique Ahmed Shaikh has recorded a dissenting note regarding the majority decision. He acknowledged the importance of promoting EV adoption in Pakistan as part of the country's broader sustainable energy goals, but expressed disagreement with the financial approach taken.

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

He argued that it is inequitable to shift the cost of incentivising one sector onto all consumers, especially when a large segment of the population lacks access to or the ability to use EV technology. He maintained that subsidies should be funded through mechanisms that do not impose undue burdens on existing consumers, such as government grants or external funding sources.

"I firmly support a Cost of Service Tariff structure, and any subsidy provisions should be limited to assisting low-income residential consumers, rather than being broadly allocated to incentivise specific businesses or consumer categories," he said, adding, "For these reasons, I respectfully dissent from the majority decision as a matter of principle."