Power Division announces 44% Discounted Tariff for EVs Charging Stations
Islamabad – The electricity rate for electric vehicle (EV) charging stations has been reduced from PKR 71 per unit to PKR 39.70 per unit. For the first time in the country’s history, electricity prices for EVs have been slashed by 44%. Additionally, regulations for the establishment of EV charging stations and battery swapping locations have been put into effect. These new rules have been introduced under the Power Division’s National Energy Conservation Authority (NEECA), with an official gazette notification issued.
According to the details, the reduction in electricity rates for charging stations from PKR 71 to PKR 39.70 per unit will result in up to three times savings in travel expenses compared to petrol and other fuels. This is expected to significantly lower fares. Moreover, a decreased reliance on petrol and other fuels will also help save considerable foreign exchange.Cars’ sale up 51% to 46,398 units during Jul-Dec
Currently, it is estimated that there are around 10 million motorcycles in Pakistan, consuming approximately $6 billion annually on fuel. Converting these motorcycles to electric technology, which costs about PKR 50,000 on average, will offer a return on investment in just three to four months, while also saving billions of dollars in foreign exchange.
In a similar vein, using electric technology in three-wheeled vehicles (such as rickshaws) is expected to notably cut down urban travel costs, leading to lower fares and reducing harmful emissions, thereby tackling air pollution. The reduction in travel expenses will also have a positive impact on urban goods transportation, potentially lowering the prices of essential goods.
This groundbreaking move by the Power Division is expected to bring significant changes to travel-related expenses and operations. The setup of charging stations and battery swapping points in local neighborhoods will create new business opportunities. Permits to establish these stations or swapping points can now be obtained within just 15 days. The Power Division’s NEECA has implemented a streamlined one-window system, allowing for online registration via their website.
To ensure a competitive market and encourage both local and foreign investment, the regulations have been simplified, with the registration fee set at a modest PKR 50,000. These measures aim to help achieve the target of 30% EV adoption by 2030.
The regulations support five levels of charging technology, offering equal opportunities for both global and regional EV manufacturers. Special care has been given to the safety and maintenance of charging stations and battery swapping points, with plans for regular inspections and audits.
The introduction of reduced electricity tariffs and the new regulations for EV charging stations will create new, profitable business and investment opportunities, generate employment, and bolster the country’s economy.