Delhi Slashes Tariffs for EV Charging to Promote Electric Mobility

Residential charging stations need to pay ₹4.5/kWh


In a step to curb pollution in the city, the Delhi Electricity Regularity Commission (DERC) has cut down the rates of charging stations for e-rickshaws and other electric vehicles.

Residential charging stations will now have to pay ₹4.5 (~$ 0.065)/kWh instead of ₹5.5 ($0.07)/kWh since these are low tension electric supply. Public charging stations are high tension (HT) points and will now attract a tariff of ₹4 (~$ 0.057)/ kVAh instead of ₹5 (~$ 0.07)/kVAh.

In November of 2018, the Delhi Electric Vehicle Policy was launched with the objective of improving Delhi’s air quality by reducing emissions in the transport sector. The policy brought about the rapid adoption of EVs where they would contribute to 25% of new vehicle registrations by 2023. The policy also aims at job creation in driving, selling, financing, servicing, and charging EVs.

The recently announced annual budget also contained several incentives on the purchase of electric vehicles to promote EV adoption in India. A GST rate cut on EVs from 12% to 5% was introduced recently to facilitate the transition to intelligent mobility. The number of e-rickshaws in Delhi has risen, and they are ideal for last-mile connectivity. The tariff cut for charging e-rickshaws encourages higher adoption of this facility. Earlier this year, Mercom reported that power theft for charging of e-rickshaws cost the distribution companies in Delhi approximately ₹1.5 billion (~$21.08 million) in a year. According to estimates, there are more than 100,000 e-rickshaws running in the city. However, only one-fourth of e-rickshaws are registered despite the subsidy provided to them by the government.

In June 2019, the adjacent union territory of Chandigarh also announced new rates for EV charging stations. The Joint Electricity Regulatory Commission set the tariff for the supply of electricity through charging stations at ₹4 ($0.06)/kWh and ₹100 ($1.44) as a fixed monthly charge on electricity bill for the stations.

Previously, Mercom reported on the news of BHEL installing the first solar-based EV charger along the Delhi-Chandigarh highway.

Earlier, EV company Vakrangee had announced that it would establish charging infrastructure units for EVs across India.

Image credit: U.S. Department of Transportation – Federal Highway Administration (FHWA) [Public domain]

Ramya Ranganath is an Associate Editor and Writer for Mercom Communications India. Before joining Mercom, Ramya worked as a Senior Editor at a digital media supply chain solutions company. Throughout her career, she has developed end-to-end content for various companies in a wide range of domains, including renewables. Ramya holds a bachelor’s degree in Mechanical Engineering from M.S. Ramaiah Institute of Technology and is passionate about environmental issues and permaculture.