DERC Orders EV Charging Costs Shift to Operators Under PM E-Drive

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The Delhi Electricity Regulatory Commission (DERC) has clarified that the cost of setting up electric vehicle charging infrastructure under the PM E-Drive Scheme cannot be recovered from electricity consumers in the national capital. In its latest order, the commission stated that these expenses must be borne by the Charge Point Operators (CPOs), ensuring that power consumers are not burdened with additional charges for the expansion of EV charging facilities.

The commission observed that while the PM E-Drive Scheme provides financial assistance to accelerate the deployment of public EV charging infrastructure, the responsibility for investing in and operating charging stations lies with the respective operators. DERC emphasized that distribution companies (DISCOMs) should not transfer such infrastructure costs to electricity users through regulated tariffs, reinforcing consumer protection alongside clean mobility goals.

The clarification comes as the Centre continues to expand the PM E-Drive initiative, under which ₹2,000 crore has been earmarked to support the installation of more than 72,000 public EV charging points across India. The scheme is designed to strengthen charging infrastructure, improve accessibility, and encourage faster adoption of electric vehicles in urban centres and along major highways.

For Delhi, the ruling is expected to provide greater clarity on the financial responsibilities associated with EV charging infrastructure. By placing the investment obligation on charging operators rather than electricity consumers, DERC aims to promote a commercially sustainable charging ecosystem while ensuring that electricity tariffs remain unaffected by infrastructure development costs.

The decision also complements the Delhi government’s broader efforts to strengthen the city’s EV ecosystem through an expanded charging network, simplified approvals, and increased participation from private players. These initiatives are intended to improve charging accessibility and support the growing number of electric vehicles on Delhi’s roads.

As India’s electric mobility ecosystem continues to evolve, clear regulatory frameworks such as DERC’s latest directive are expected to play a crucial role in balancing consumer interests with infrastructure development. By ensuring that EV charging infrastructure costs are borne by operators instead of power consumers, the commission has reinforced a model that supports both sustainable investment and long-term growth of the EV charging network.

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