UAE plans unified electric vehicle charging fees
An updated resolution from the UAE cabinet has established a standardized pricing system for charging electric vehicles across the nation. The updated fee policy requires service providers to bill at least Dh1.20 plus VAT per kWh for quick charging and Dh0.70 plus VAT per kWh for slow charging.
Nabhan, the CFO of Yandex, analyzed the recent amendment and stated, "The choice includes charging fees for electric vehicles, varying based on the charging method."
This action is part of the government's initiatives to regulate and standardize the delivery of EV charging infrastructure. At present, the prices at charging stations differ greatly, with some being provided at no cost. The Council of Ministers has the power to modify these fees as needed, which may involve adding, removing, or adjusting the fee system.
At the beginning of this year, UAEV, the initial EV charging network owned entirely by the government, was introduced with intentions to establish 100 charging stations nationwide. ADNOC group, a fuel company, announced in April their intention to add over 500 new fast and advanced chargers in the coming years. The demand for EVs has significantly increased, with sales in the UAE almost quadrupling in 2023 to reach 11.3 per cent from 3.7 per cent in 2022.
Welcome Move
Legal professionals and industry insiders have praised the decision, noting that it establishes a positive example. Mostafa Hegab, Legal Counsel at Mansoor Lootah Advocates and Legal Consultants, stated that the resolution is intended to govern the usefulness of the services provided by electric vehicles. "It signals the start of a new age in utilizing renewable energy as a dependable substitute for power."
In 2023, a UAE official announced plans for creating a pricing strategy for electric vehicle charging.
Numerous online forums for EV owners have embraced the decision, noting that it would alleviate congestion at superchargers and guarantee accessibility to chargers on main roads and in cities.
Guaranteed accessibility
Shireen M., an EV owner who travels regularly between Dubai and Abu Dhabi, stated that although the decision would raise her costs, she was pleased.
She mentioned that frequently she observed individuals utilizing chargers in public areas even if they didn't require them since they were free. I waited in line for hours just to charge my device for 10 minutes to have enough battery to go home, while others were charging up to 100% because they didn't want to pay for it. This action guarantees that the chargers will be accessible and unoccupied in times of urgent necessity.
The updated fee system is a component of the UAE's larger initiatives to encourage eco-friendly transportation and shift towards a more sustainable economy.
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