Govt mulls tariff regulation to boost EV charging infra, source says – EQ Mag
NEW DELHI : The government may regulate the tariff levied by charging stations for electric vehicles with a view to encourage companies to set up more of such infrastructure, a senior power ministry official told Informist.
At present, charging stations, such as those set up by companies like Tata Power Ltd, ABB India Ltd, Energy Efficiency Services Ltd, and Amara Raja Batteries Ltd, are free to charge whatever tariff they deem fit to commercially operate such infrastructure.
“At present, the average tariff ranges between 15-19 rupees per unit in most of the states,” the official said.
“These companies are making a loss even at 19 rupees per unit,” said the official. “We can’t let that happen and need to ensure that this remains a viable venture for them,” he added.
In order to encourage more investments in this crucial area, the government believes that it should regulate the tariff in the sector for day-time charging by putting a ceiling.
The official said operations of these companies could turn viable if they charge in the range of 22-24 rupees per unit, but the final numbers are still being calculated.
However, to make this tariff affordable for the consumers, the government may have to lend some support, said the official without elaborating on the nature of support being considered.
The tariff of 22-24 rupees that the ministry is considering is substantially higher than the off-peak tariff offered by electric vehicle charging stations in the country.
For instance, the average tariff in Delhi is 10-50 rupees per unit, the official pointed out. In Chhattisgarh, consumers pay 9-19 rupees per unit. In Assam and Gujarat, the tariff is in the range of 15-19 rupees. In Tamil Nadu, on the other hand, consumers pay 3-23 rupees per unit.
Charging stations are crucial to the success of the government’s ambitious initiative to promote electric vehicles in the country.
Most electric two-wheelers in India have a range of 50-100 km per charge, and most cars have a range of 200-300 km per charge. However, this is not enough, particularly for inter-city travel, which can often involve a distance of 500-1,500 km.
This acts as a major psychological barrier to the adoption of electric cars, as people don’t want to buy a traditional car for long-distance travel and an electric vehicle for shorter journeys.
The availability of fast-charging stations, which can charge a car by the time the passengers complete a meal at a highway restaurant, are expected to address this concern and lead to greater adoption of electric vehicles.
Source: PTI
