Tamil Nadu's EV Charging Operators Face Rising Costs Due to New Tariffs

Electric vehicle charging operators in Tamil Nadu are confronting a sharp rise in operational costs due to new electricity tariffs implemented by the TNERC. The revised rates have increased both energy and fixed monthly charges, raising concerns about the economic viability of public charging infrastructure. With most stations operating at low capacity, operators are urging the state government to consider incentives to support the EV ecosystem. This situation could potentially slow down the state's efforts to enhance EV adoption and expand the charging network.

By Narendra Chaudhary Jul 7, 2025, 12:58 IST

Impact of New Electricity Tariffs on EV Charging Stations

Chennai, July 7: Electric vehicle (EV) charging service providers in Tamil Nadu are preparing for a significant increase in their operational expenses following a recent adjustment in power tariffs by the Tamil Nadu Electricity Regulatory Commission (TNERC), which took effect on July 1.

The updated tariff framework has raised both energy and fixed monthly charges for EV charging stations, prompting concerns among operators regarding the financial sustainability of public charging facilities in the region.

Although TNERC has maintained its time-of-day (ToD) tariff system, initially introduced in 2023 to encourage off-peak charging, electricity rates have been increased across all time periods.

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

Charging during nighttime (10 p.m. - 6 a.m.) will now be priced at Rs 8.10 per kWh, an increase from the previous Rs 7.85.

However, the most significant impact arises from the substantial hike in fixed charges for high-tension (HT) connections, commonly used by fast-charging stations. These monthly fixed charges have more than doubled, increasing from Rs 145 to Rs 304 per kVA.

These charges are based on the sanctioned load and are applicable regardless of actual consumption. For instance, a 50 kW fast-charging station that previously incurred around Rs 1,300 in fixed charges will now face a monthly bill of Rs 2,750, excluding electricity taxes.

This situation is likely to put additional pressure on operators who are already grappling with low utilization rates.

K.P. Karthikeyan, Director of the Indian Charge Point Operators Association, characterized the tariff increase as a significant setback. He noted, “Our average electricity cost used to be around Rs 9 to Rs 9.50 per unit. With the new tariffs, it has surged by approximately Rs 2.50 per unit — a 20 percent increase in power costs.”

He added that while higher utilization might mitigate some of the effects over time, most public charging stations currently operate at merely 5-6 percent capacity, and even the best-performing sites seldom exceed 15-16 percent utilization.

“This is a fixed cost,” he stressed. “Unless utilization sees a substantial increase, this tariff hike effectively results in a 20 percent rise in our operational costs.”

The timing of this tariff revision coincides with the state's efforts to promote greater EV adoption and expand the charging network. Operators are now calling on the state government to reassess the policy framework and consider providing incentives or subsidies to maintain the viability of the EV charging ecosystem.

Without such assistance, there are concerns that the rising costs could hinder Tamil Nadu's progress in establishing a robust and affordable public charging infrastructure.