Nepra cuts EV charging tariff by 45%, backs cross-subsidy plan

ISLAMABAD: The power regulator has slashed the base tariff for electric vehicle (EV) charging stations by 45 per cent to Rs23.57 per kilowatt-hour (kWh), accepting a government request aimed at accelerating EV adoption. This tariff is excluded of taxes, margins and other adjustments.

The National Electric Power Regulatory Authority (Nepra) approved the reduction on Tuesday, down from the current Rs45.55/kWh. After accounting for taxes and adjustments, the effective rate is expected to fall to Rs39.70/kWh — a sharp drop from the present post-tax cost of Rs71.10/kWh.

To manage the difference between the new and old tariffs, Nepra will implement a cross-subsidy mechanism, with all current taxes and charges continuing to apply. The new tariff will be effective from April to June 2025.

The regulator said the subsidy’s long-term impact on other consumers will be reviewed during the next fiscal year’s uniform tariff determination.Nepra also removed the Rs24.44 per unit cap margin for EV charging, allowing market forces to determine profit margins going forward.

The tariff adjustment aligns with the country’s broader green mobility goals, including a target for 30 per cent of the country’s vehicles to be electric by 2030. Currently, only eight EV charging stations are operational nationwide.

In a dissenting opinion, Nepra Member (Technical) Rafique Ahmed Shaikh opposed the subsidy being borne by all power consumers. He called it inequitable, noting many Pakistanis neither own EVs nor have access to charging infrastructure. Shaikh instead advocated for government grants or external funding, and supported targeted subsidies for low-income residential users only.