Kerala has not yet implemented the central guidelines for electric vehicle (EV) charging rates, leading to rising charging prices across the state. Currently, different companies charge between Rs 15 and Rs 23 per unit, as the state continues to charge according to its own regulations rather than the central directive, which mandates a more uniform rate.

Central directive not followed

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The central guidelines stipulate that power supply companies providing electricity to EV charging stations should only charge an "energy charge" in a single-part tariff system. However, the Kerala State Electricity Board (KSEB) imposes an additional "fixed" charge along with the energy charge, causing a rise in EV charging rates.

Under central guidelines issued in 2022, all states are required to ensure that the electricity tariff for EV charging stations is lower than the average cost of electricity supply. While Kerala has fixed the rate at Rs 5.50 per unit for companies, the imposition of a fixed charge has caused discrepancies. The state government is responsible for capping the EV charging rates, and the regulatory commission must determine the electricity rates for charging stations.

Although the energy rate for EV charging companies is Rs 5.50 per unit, a fixed charge of Rs 100 per kilowatt is also applied. For example, a 60-kilowatt charging station incurs a fixed charge of Rs 6,000 per month. As a result, companies are forced to pass on these costs to customers, leading to higher rates.

Even charging stations set up by companies transitioning to electric vehicles for internal use, as well as residential flats installing EV chargers, are required to pay a fixed charge. This additional cost further strains both companies and consumers.

Central push to reduce daytime rates

In new guidelines issued to state chief secretaries on September 17, the central government has proposed reducing daytime EV charging rates. It has been suggested that electricity supplied to charging stations between 9 am and 4 pm should be at a lower rate. The Centre also recommends that only a single-part tariff system should be implemented until March 31, 2028, with the EV charging rates capped at the average cost of electricity supply.