The new power tariff structure order, pronounced recently by the regulator, for electric vehicle (EV) charging points in Tamil Nadu is seen as a move in the wrong direction as the tariff has been doubled and it is even higher than the commercial tariff, say operators of EV charging stations.
Under the new structure, the energy charges per kWh have increased 49 per cent from ₹8.05 to ₹12 for peak hours. But the more alarming part, according to operators, is the fixed charges, which have been increased from ₹70 to ₹300 per kW (for 51-112 kW connections) per month and ₹550 (for above 112 kW) per month. This is an increase of 328 per cent.
While the revised cost is significantly higher in Tamil Nadu as compared to other States, the fixed charges are exorbitantly higher, which threaten the viability of public charging stations in the State. “Under the new tariff, the per km charge for an EV consumer in Tamil Nadu will be more than ₹3.5, which is reported to be higher,” Awadhesh Jha, Chairman, Indian Charge-point Operators Association, told businessline.
‘Encourage ecosystem’
The Ministry of Power, in its January 2022 guidelines, had advised all regulators and State DISCOMs to exempt charging stations from fixed demand charges till 2025. “Since the next 2-3 years will be critical for EV adoption, State governments should encourage the EV ecosystem. We understand that the discoms would look for additional revenue to shore up their finances. But if charging stations don’t offer viability, investors will lose interest,” he said.
Jha said the association is in touch with the Tamil Nadu government and the State regulator. “We have represented to the relevant authorities and have requested support for the next three years. After that, the ecosystem will stand on its own,” he added.