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

To manage difference between new and old tariffs, Nepra will implement cross-subsidy mechanism

By Israr Khan
April 16, 2025
The National Electric Power Regulatory Authority (Nepra) sign can be seen on a building. — APP/File
The National Electric Power Regulatory Authority (Nepra) sign can be seen on a building. — APP/File

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. Nepra also removed the Rs24.44 per unit cap margin for EV charging, allowing market forces to determine profit margins going forward.