Nepra Allows Electric Vehicle Charging Stations to Charge at Rs23.57 per kWh Plus Market Margin

Strategic Insights -

The National Electric Power Regulatory Authority (Nepra) has issued a revised decision allowing electric vehicle charging stations (EVCS) to charge Rs23.57 per kilowatt-hour (kWh) plus a market-determined margin from electric vehicle (EV) owners. This decision was made under the NEPRA (Review Procedure) Regulations on the motion and policy guidelines filed by the federal government for rationalisation of the EVCS tariff. Nepra had earlier slashed the base tariff for EVCS by 45% to Rs23.57/kWh, down from Rs45.55/kWh.

Key Takeaways:

  • Nepra has allowed EVCS to charge Rs23.57 per kWh plus a market-determined margin from EV owners, effective under the A-2(d) tariff.
  • Billing for EVCS will remain under the A-2(d) tariff, with no monthly fuel cost adjustments (FCAs) applicable.
  • Nepra had earlier reduced the base tariff for EVCS by 45% to Rs23.57/kWh, down from Rs45.55/kWh.
  • The effective rate is projected to drop to Rs39.70/kWh after taxes and adjustments, down from Rs71.10/kWh.
  • Member (Technical) Rafique Ahmed Shaikh submitted a dissenting note, disagreeing with the financial structure and arguing that subsidies should be supported through government grants or external sources rather than existing consumers.

Statistics:

  • Rs23.57 per kWh: the new tariff for EVCS.
  • 45%: the reduction in base tariff for EVCS.
  • Rs45.55/kWh: the original base tariff for EVCS.
  • Rs71.10/kWh: the effective rate before the reduction.
  • Rs39.70/kWh: the projected effective rate after taxes and adjustments.
  • 30 days: the timeframe for the federal government to notify the decision in the official Gazette.

Sources:

  • Nepra's decision under NEPRA (Review Procedure) Regulations on the motion and policy guidelines filed by the federal government.
  • The Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, Section 31(7).