EV charging operators in TN face higher power bills after tariff hike

Chennai, July 7 (IANS) Electric vehicle (EV) charging operators across Tamil Nadu are bracing for a steep rise in operational costs following a significant revision in power tariffs by the Tamil Nadu Electricity Regulatory Commission (TNERC), effective July 1.

The revised tariff structure has increased both energy charges and fixed monthly charges for EV charging stations, raising concerns among operators about the economic viability of public charging infrastructure in the state.

While TNERC has retained its time-of-day (ToD) tariff model -- first introduced in 2023 to incentivise off-peak charging -- it has hiked electricity rates across all time slots.

Under the new structure, charging during solar hours (9 a.m. to 4 p.m.) will cost Rs 6.50 per kWh; during peak hours (6 a.m. - 9 a.m. and 6 p.m. -10 p.m.), the rate rises to Rs 9.75 per kWh, up from Rs 9.45.

Night charging (10 p.m.- 6 a.m.) will cost Rs 8.10 per kWh, compared to Rs 7.85 earlier.

The more significant burden, however, comes from the sharp increase in fixed charges for high-tension (HT) connections -- the type typically used by fast-charging stations. These monthly fixed charges have more than doubled, rising from Rs 145 to Rs 304 per kVA.

These are levied based on sanctioned load and apply regardless of actual usage. For example, a 50 kW fast-charging station, which previously paid around Rs 1,300 in fixed charges, will now pay Rs 2,750 per month -- excluding electricity taxes.

This is expected to strain the finances of operators already struggling with low utilisation levels. \

K.P. Karthikeyan, Director of the Indian Charge Point Operators Association, described the hike as a major setback. “Our average cost of electricity used to be around Rs 9 to Rs 9.50 per unit. With the new tariffs, it has increased by approximately Rs 2.50 per unit -- that’s a 20 per cent jump in power cost,” he said.

According to him, while higher utilisation might offset some of the impact over time, most public charging stations currently operate at just 5 - 6 per cent capacity, and even well-performing sites rarely exceed 15 -16 per cent utilisation.

“This is a fixed cost,” he emphasised. “So, unless utilisation sees a major jump, this tariff hike effectively translates into a 20 per cent escalation in operational costs for us.”

The tariff revision comes at a time when the state is pushing for greater EV adoption and expanding the charging network. Operators are now urging the state government to review the policy framework and consider incentives or subsidies to keep the EV charging ecosystem viable.

Without such support, many fear that the increased costs could slow down Tamil Nadu’s momentum in building a robust, affordable public charging infrastructure.

--IANS

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