Increasing power tariffs and electric vehicles – a disastrous combo?

Written by Talha Ikram ·  55 sec read >

We recently listed some of the electric cars that you might be able to buy in Pakistan very soon that range from SUVs like the MG ZS EV and Audi e-tron to smaller cars like the Zotye Cloud 100. Meanwhile, the government has also ratified the Electric Vehicle (EV) policy for the country allowing the import of four-wheel EVs with virtually no tax at all but the question is if it is feasible for the country?

According to Dawn, there is likely to be a Rs. 1.53 hike in power rates as NEPRA is set to hear the petitions filed by the Central Power Purchasing Agency (CPPA) on behalf of ex-WAPDA Discos. There has already been a price hike in power tariff by Rs. 1.11 in mid-December. So the pattern we see here is that the cost of electricity is increasing in the region.

Increased demand is also expected to further increase the price of electricity. As of now the total installed electricity generation capacity of Pakistan is 37,402 MW which means that Pakistan has the potential to produce an ample amount of electricity. Then why do we face load-shedding? The problem is that the demand for electricity in Pakistan is 25,000 MW whereas the transmission and distribution capacity is stalled at approximately 22,000 MW.

Without the required infrastructure in place to support EVs, it is most likely that NEPRA will be forced to upgrade the transmission and distribution systems in Pakistan in haste to meet the added load and that will inevitably be reflected on the consumers in the form of increased power tariffs.