Govt slashes power tariff for EV charging stations by 45%

Power division proposes revised agreements with eighteen more Independent Power Producers (IPPs) before federal cabinet
An undated image of EV charging stations. — Canva
An undated image of EV charging stations. — Canva  

The Federal Minister for Energy Sardar Awais Ahmad Laghari announced a reduction in the power tariff for electric vehicle (EV) charging stations. The tariff has been reduced by 45%, bringing the cost down from Rs71 per unit to Rs39.70 per unit.

This move is a part of the government’s commitment to promote electric vehicles and align with the recently passed legislation mandating the transition to Islamic banking by 2077. 

The minister highlighted that regulations related to EV charging stations will be implemented, allowing registration and business operations within 15 days.

Under the leadership of Prime Minister Mian Muhammad Shehbaz Sharif, a special concessional electricity rate was announced for EV charging stations, which marks the first instance in the country's history where the per-unit electricity price for EVs has been reduced by 44%.

Reduction in circular debt and improved recovery rate

The National Energy Conservation Authority, an institution of the Power Division, has implemented regulations for establishing the first EV charging stations and battery replacement points in the country.

The minister also noted that the circular debt decreased to 12 billion rupees, reaching 2,381 billion rupees from July to November 2024, compared to 2,393 billion rupees on June 30, 2024. The recovery rate for this period reached 96%, significantly improving from the same period in 2023 due to the government's prudent policies.

Additionally, the power division proposed revised agreements with eighteen more Independent Power Producers (IPPs) before the federal cabinet. The Cabinet Committee on Energy approved the Power Division’s summary, granting permission for a single-point power supply to Industrial States and Special Industrial Zones, addressing complaints regarding new connections and billing processes.

The minister emphasised that the power sector has begun to reap the benefits of the steps taken by the Power Division. The conversion of motorcycles and three-wheeled vehicles to electric technology is expected to save billions of dollars in fuel costs and reduce air pollution.