Islamabad: Under the leadership of Prime Minister Mian Muhammad Shehbaz Sharif, the government has announced a special discounted electricity tariff for electric vehicle (EV) charging stations. The tariff for these stations has been reduced from the current rate of 71 PKR per unit to 39.70 PKR per unit, marking a 44% reduction in electricity rates for EVs for the first time in the country’s history.
In addition to the tariff reduction, the regulations for the establishment of electric vehicle charging stations and battery replacement points have also been implemented. The National Energy Conservation Centre (NEECA), under the Power Division, has issued these regulations, which include a formal gazette notification.
With the reduced electricity tariff, travel costs for electric vehicle users are expected to decrease significantly, with a potential 3-fold reduction compared to petrol and other fuel costs. This change will lead to a considerable drop in fares and reduce reliance on petroleum products, ultimately saving foreign exchange. An estimated 6 billion dollars are spent annually on fuel for motorcycles in the country, and transitioning these motorcycles to electric technology could pay back the investment within three to four months while saving billions in foreign currency.
The adoption of electric technology for three-wheeled vehicles, such as rickshaws, is also expected to reduce travel costs within cities, positively impacting fares and contributing to a reduction in harmful emissions, helping combat air pollution. The savings in travel expenses are also expected to benefit the cost of goods transportation, leading to a decrease in the prices of essential goods.
This groundbreaking move by the Power Division is not only expected to bring about positive changes in travel expenses but also create new business opportunities through the establishment of charging stations and battery replacement points across the country. With the new regulations, entrepreneurs can now set up charging stations or battery points within just 15 days, with a simple registration process available on the Power Division’s website.
To ensure a competitive market and attract both local and foreign direct investment, the regulations have been made user-friendly, with a nominal registration fee of only 50,000 PKR. The government aims to achieve a target of 30% electric vehicles on the road by 2030, supported by these simplified regulations.
These regulations also support five different levels of charging technology, offering equal opportunities for global and regional electric vehicle manufacturers. Special attention has been given to the protection of charging stations and battery replacement points, with regular monitoring and audits in place.
With the introduction of discounted electricity rates and the implementation of charging station regulations, new profitable business and investment opportunities will emerge, creating jobs and strengthening the national economy.
