FPCCI MEETING ON ENERGY: Govt removes Rs22 ceiling in tariff to boost EV sector

Islamabad: The federal government has set a reduced base tariff of Rs39.70 per unit for electricity used at electric vehicle (EV) charging stations, while allowing their operators the flexibility to add additional charges, without any ceiling, to cover operational costs, says a press release.

The Managing Director of the National Energy Efficiency & Conservation Authority (NEECA), Dr Sardar Mohazzam, disclosed this while speaking as the keynote speaker at the 5th meeting of the Central Standing Committee of the FPCCI on Energy. He said that the earlier Rs70 per unit tariff applied to the charging stations, including Rs22 charged by the EV users to cover the operational expense of the charge points. Dr Mohazzam said the government had removed the ceiling of Rs22, and the charging stations’ owners could add whatever amount they deemed appropriate to cover their operating costs.

The NEECA chief said the revised tariff policy reflected the fact that the operational costs of a charging station varied in different parts of the country, especially when set up on inter-city highways and hilly areas. He told the participants of the meeting that merely two no-objection certificates (NOCs) were required by the NEECA to grant permission for setting up the charging station anywhere in the country, as one of the NOCs was issued by the relevant power distribution company and the other by the area civic or land owning agency.

He said that NEECA had laid down a simplified process for setting up a charging station, and a prospective operator could secure permission for the purpose in just 15 days. He said that Rs50,000 was charged for granting registration to a new charging station, and the entire application process had been made online. Dr Mohazzam said the NEECA staff had been asked to fully assist the prospective investors and entrepreneurs who were willing to establish EV charging facilities. He predicted that there would be a manifold increase in the number of charging stations in the country due to incentives offered by the government to the EV sector. The NEECA MD said the government had planned that an EV charging point would be available after every 100 kilometers on motorways in the country.

Malik Khuda Baksh, Convener of the FPCCI Standing Committee, assured his committee’s fullest support to the government to introduce EVs and their charging facilities in the country to maximally reduce the carbon footprint of the transport sector to effectively tackle the issue of climate change.

He emphasised that the government should offer incentives to businesses and investors who were willing to establish EV assembly points and a network of charging stations. SM Tanveer, Patron-in-Chief of the United Business Group, assured the session’s participants that FPCCI would fully assist the government’s campaign to expand the market for EVs in Pakistan as part of its climate mitigation measures by reducing the consumption of fossil fuels.

Earlier, the CEO of ADM Group, Yasir Bhambani, told the meeting about the plan of his company to set up over 3,000 EV charging stations across Pakistan. He said the proposed charging stations would also recharge the electric buses in Karachi and other cities.

He said that his business group planned to set up an assembly plant to produce EVs in Pakistan with complete transfer of technology.

He said that mini-electric vehicles to be introduced by his business group would particularly replace the conventional fuel-powered cars currently serving the customers of different ride-hailing services in cities. Bhambani said that his business group would launch its brand of EVs in Pakistan as soon as a network of 1,000 EV charging stations starts working across Pakistan.