ISLAMABAD: In a significant move to promote the adoption of electric vehicles (EVs) in Pakistan, the National Electric Power Regulatory Authority (NEPRA) has approved a substantial reduction in the base tariff for Electric Vehicle Charging Stations (EVCS), slashing it from Rs 45.55 to Rs 23.57 per unit.
According to NEPRA’s official decision, the base tariff for EV charging stations has been slashed from Rs 45.55 per unit to Rs 23.57 per unit — marking a notable decrease of Rs 21.98 per unit.
The tariff cut represents a Rs21.98 per unit decrease, making EV charging significantly more affordable for consumers. Additionally, NEPRA has approved the removal of the Rs24.44 per unit capped margin previously applied to EVCS. Going forward, the margin will be determined by market forces, aligning with the government’s strategy to promote private sector investment in EV infrastructure.
The decision follows a formal request and policy guidelines issued by the federal government.
According to NEPRA’s decision, the Authority also acknowledged concerns raised by stakeholders over the complexity of regulatory requirements, particularly the need for multiple No Objection Certificates (NOCs) to set up EV charging stations. “The Authority understands that in order to foster the development of charging infrastructure, the process for establishing EVCS needs to be simplified,” the decision noted.
Documents reveal that the Ministry of Energy (MoE) submitted a motion emphasizing the critical role of EVs in reducing reliance on imported fuels and mitigating environmental degradation. However, it highlighted that the sector’s growth has been stifled by high tariffs, taxes, and negative internal rates of return (IRR) for investors.
The Ministry pointed out that under the previous structure, the final cost of EV charging reached up to Rs95 per unit due to a base commercial tariff of Rs 45.55/kWh, cross-subsidies of Rs10/kWh, approximately 43% in taxes, and the capped margin. While the rate still offered some savings to consumers compared to petrol or diesel, it failed to offer sustainable returns to charging station operators.
In its request, the MoE proposed the new base tariff of Rs23.57/kWh and recommended removing the capped margin to allow market competition. The difference between the old and new tariff will be covered through a cross-subsidy mechanism, while all existing taxes and adjustments will continue to apply.
NEPRA’s approved changes will also be reflected in the respective tariff schedules and will apply uniformly across the country, including for K-Electric consumers. EVCS operators will be billed under the A-2(d) commercial tariff category, and Fuel Cost Adjustments (FCA) — whether positive or negative — will not apply to EVCS.
The Authority has forwarded the decision to the federal government for official notification under Section 31(7) of the NEPRA Act.
This decisive policy shift is expected to unlock significant investment in Pakistan’s EV infrastructure, making electric mobility a more practical and attractive option for both consumers and businesses.
