Rs23.57/kWh tariff for EV charging stations approved
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The National Electric Power Regulatory Authority (Nepra) has allowed electric vehicle charging stations (EVCS) to charge Rs23.57 per kilowatt-hour (kWh) plus a market-determined margin from electric vehicle (EV) owners.
The power regulator issued a decision under NEPRA (Review Procedure) Regulations regarding the motion and policy guidelines filed by the federal government for rationalisation of the tariff for EVCS.
Earlier, the power regulator had decided that the EVCS would provide "charging service" to electric vehicles as per the applicable tariff for EVCS. The EVCS was to be billed by distribution companies (DISCOs) under the A-2(d) tariff, with monthly fuel cost adjustments (FCAs), whether positive or negative, not applicable on EVCS.
Now, in its fresh decision, the regulator has reiterated that EVCS shall provide charging services to electric vehicles at Rs23.57/kWh, plus a margin to be determined by market forces. The EVCS will continue to be billed by DISCOs under the A-2(d) tariff, and monthly FCAs, whether positive or negative, shall remain inapplicable to EVCS.
Earlier, Nepra had reduced the base tariff for EV charging stations by 45% to Rs23.57/kWh. The regulator approved this reduction from the previous Rs45.55/kWh. After accounting for taxes and adjustments, the effective rate is expected to drop to Rs39.70/kWha significant decrease from the existing post-tax cost of Rs71.10/kWh.
The power regulator has communicated the decision to the federal government for notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. This must be done within 30 days from the intimation of the decision. In the event that the federal government fails to notify the tariff decision within the specified period, the authority itself will notify it in the official Gazette under the same provision.
The authority observed that its decision dated April 15, 2025issued via No NEPRA/RJADG (Tariff)TRF-100/EV/5469-72 in the matter of the motion and policy guidelines filed by the federal government for rationalisation of tariff for EVCS — required review. Accordingly, the authority revised the decision, replacing paragraph 28(19) of the original order with the new determination.
However, Member (Technical) Rafique Ahmed Shaikh has recorded a dissenting note regarding the majority decision. He acknowledged the importance of promoting EV adoption in Pakistan as part of the country's broader sustainable energy goals, but expressed disagreement with the financial approach taken.
"I must respectfully dissent from the majority decision to impose the financial burden of subsidising EV charging stations on the general consumer base," he stated.
He argued that it is inequitable to shift the cost of incentivising one sector onto all consumers, especially when a large segment of the population lacks access to or the ability to use EV technology. He maintained that subsidies should be funded through mechanisms that do not impose undue burdens on existing consumers, such as government grants or external funding sources.
"I firmly support a Cost of Service Tariff structure, and any subsidy provisions should be limited to assisting low-income residential consumers, rather than being broadly allocated to incentivise specific businesses or consumer categories," he said, adding, "For these reasons, I respectfully dissent from the majority decision as a matter of principle."
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KE enjoys a 12% return on equity (RoE) in US dollar (around 24.46% in Pakistani rupee) on generation, compared to National Transmission and Despatch Company's (NTDC) 15% in rupees, and 14% RoE in US dollar (around 29.68% in PKR) on distribution, far exceeding the 14.47% RoE in rupees for others like the Faisalabad Electric Supply Company (Fesco). Idle KE power plants still receive capacity payments, costing Rs12.7 billion in FY25 and Rs82.5 billion overall. Generous inflation indexation and a 17% RoE for these plants further strain finances. The Power Division urged Nepra to align KE's tariff structure with national standards to ensure fairness, transparency and affordability, stressing the need to eliminate unjustified allowances and ensure equal treatment for all utilities. KE eyes DISCO acquisitions K-Electric held a corporate analyst briefing on Monday to provide insights into its recently approved tariffs and operational updates. The company expressed openness to acquiring other DISCOs (distribution companies), should the privatisation process move forward, according to Arif Habib Limited. Its management highlighted that KE's total generation capacity currently stands at 2,397 megawatts (MW) from internal sources, while it procures over 1,600 MW externally. With the anticipated completion of NTDC interconnection projects, an additional 400 MW is expected to be integrated into its grid. The utility's robust transmission network now comprises 7,095 MVAs capacity, 74 grid stations and 1,394 km of lines, while its distribution infrastructure includes 8,964 MVAs capacity, 2,112 feeders and over 31,000 pole-mounted transformers (PMTs). Since its privatisation in 2005, KE has added 1,957 MW to its generation capacity, improved efficiency from 30% to nearly 46%, doubled transmission capacity and cut transmission and distribution (T&D) losses from 34.2% to 16%. 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