Dissenting Member Calls It Unfair to Burden General Consumers
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a tariff of Rs23.57 per kilowatt-hour (kWh), plus a market-driven margin, for electric vehicle charging stations (EVCS).
The regulator made this decision under NEPRA’s (Review Procedure) Regulations, following a motion and policy guidelines submitted by the federal government aimed at rationalising the tariff for EVCS.
Previously, NEPRA had ruled that EVCS would supply “charging services” to EV owners at the applicable tariff. The EVCS would be billed by distribution companies (DISCOs) under the A-2(d) category, with monthly fuel cost adjustments (FCAs) — whether positive or negative — not applied.
Reaffirming its earlier stance, NEPRA stated that EVCS will continue to charge Rs23.57/kWh, along with a margin determined by market forces, and DISCOs will continue to bill them under the same A-2(d) tariff without any FCAs.
Initially, NEPRA had slashed the base tariff for EVCS by 45% — from Rs45.55/kWh to Rs23.57/kWh. After including taxes and adjustments, the new effective rate will drop to Rs39.70/kWh, a sharp decline from the current post-tax rate of Rs71.10/kWh.
NEPRA has forwarded its decision to the federal government for publication in the official Gazette within 30 days, as required under Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. If the government fails to notify it within that timeframe, NEPRA will issue the notification itself.
The regulator noted that its previous order, issued on April 15, 2025 (Ref: No NEPRA/RJADG (Tariff)TRF-100/EV/5469-72), needed revision. Accordingly, NEPRA amended paragraph 28(19) of the earlier decision with the new tariff determination.
However, Member (Technical) Rafique Ahmed Shaikh dissented from the majority decision. While he recognised the value of promoting electric vehicles as part of Pakistan’s sustainable energy strategy, he disagreed with how the costs would be covered.
“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.
Shaikh argued that it was unjust to pass on the costs of incentivising one sector to all electricity users, particularly when many lack access to EV technology. He suggested that such subsidies should instead be funded through government grants or other external sources.
“I fully support a Cost of Service Tariff model and believe any subsidies should be confined to assisting low-income residential consumers, rather than broadly supporting specific businesses or consumer groups,” he said. “For these reasons, I respectfully dissent from the majority decision as a matter of principle.”
