Dissecting India’s Electricity Tariff Landscape for EV – Special Review

Electricity tariff for EV charging is an important fiscal and regulatory tool to shape the e-mobility landscape in India. While EV tariffs can enhance the revenue of power distribution utilities, it can potentially impact the commercial viability of the charging service business and the total cost of EV ownership. Further, EV tariff design can be suitably employed to flatten the utility’s load curve and increase the offtake of renewable energy. However, tariff-setting in India is nuanced and the tariff landscape widely varies from state to state (since tariff-fixing is a state-subject). This is true for EV tariffs as well. But the complexity in the case of EV has other dimensions. Recognizing the need to demystify the EV tariff landscape against the regulatory backdrop, AEEE has undertaken an in-depth review of the existing EV tariff schedules across states and Union Territories, producing an array of never-before-seen insights. Also, the study by bringing to the fore some key aspects of EV tariff design contributes to the discourse around tariff-setting and regulations.