Gujarat Tops The List In India With Lowest Power Tariff For EV Charging

By Saur News Bureau/ Updated On Mon, Oct 16th, 2023

Gujarat seems to be India’s frontrunner regarding affordable tariffs for Electric Vehicle (EV) users. An analysis of the state-wise tariffs for the sector revealed that Gujarat offers the lowest tariff, ranging from Rs 4 to Rs 4.1 per unit, depending on the usage. On the other hand, Meghalaya seems to be charging a maximum of Rs 10.09/unit for the same.

The state-wise analysis was recently published in NITI Aayog’s recent handbook on EV charging. The report shares details on the importance of implementing the EV tariff established by State Electric Regulations Commissions (SERCs), ensuring that EV charging infrastructure is connected and operating properly, preventing improper use of EV connections, managing the distribution network, and undertaking grid upgrades based on growth in load including from EV charging.

As per the details, some of the other states that offer affordable charging tariffs include Maharashtra (Rs 4.05-Rs 4.24/unit), Odisha (Rs 4.20-Rs 5.70/unit) and Delhi (Rs 4.5/unit).

On the other hand, the states with the highest tariff besides Meghalaya included Bihar (Rs 6.3-Rs 7.4/unit), Andhra Pradesh (Rs 6.7/unit) and Jharkhand (Rs 6-Rs 6.25/unit).

The NITI Aayog meanwhile also talked about several other issues related to EV charging.

Tariff-An Important Aspect

The report said that electricity tariff is a critical fiscal and regulatory tool available to state governments, and tariffs and tariff designs vary from state to state. EV charging is a new addition to the consumer basket of a discom, and recognizing it as a distinct consumer category in the tariff schedule can facilitate power connections for EV charging, it said.

The report said that introducing an EV-specific electricity tariff has multiple benefits, which allow Tariffs to be designed to send clear price signals to EV users. These tariffs can also be used to manage load profiles of EV charging. Electricity tariffs also have a major operating cost for CPOs providing charging services and can impact the business case for public EV charging. Further, a separate tariff category for EV charging will allow state governments to offer “EV only” incentives in order to encourage adoption.