The UAE government has introduced a new cabinet resolution to standardise the pricing for electric vehicle (EV) charging across the country. According to the updated regulations, service providers must charge at least Dh1.20 plus VAT per kWh for ‘express’ charging and Dh0.70 plus VAT per kWh for ‘slow’ charging.
This new pricing structure was outlined in Cabinet Resolution No. 81, which was published in the Official Gazette on July 8. Although the exact implementation date isn’t specified, it is set to come into effect 60 days from the publication date, making it applicable from September 6.
This regulation is part of a broader government initiative to standardise and regulate EV charging infrastructure. Currently, charging station fees vary greatly, with some stations offering free services. According to the new resolution, the Council of Ministers retains the authority to modify these fees as needed, including making adjustments or additions to the fee structure.
Media reports have quoted industry experts praising the resolution, viewing it as a positive development. They explained that the purpose of the resolution is to introduce specific fees based on the type of charging service provided.
EV charging network launched
Earlier this year, the UAE launched UAEV, the country’s first government-owned EV charging network, with plans to install 100 charging stations nationwide. Additionally, ADNOC plans to add over 500 new fast and superfast chargers in the coming years. The demand for EVs in the UAE surged dramatically in 2023, with sales jumping to 11.3% of the market from 3.7% in 2022.
A senior legal counsel was quoted by a leading UAE English daily as saying that the resolution will help regulate EV charging services and support the shift towards renewable energy. He noted that although some users who previously enjoyed free charging will now incur costs, the new fees will still be more economical compared to fossil fuels.
EV owners have also welcomed the changes, noting that it could alleviate congestion at charging stations and ensure better availability of chargers on major routes and in cities.
An EV owner who frequently travels between Dubai and Abu Dhabi expressed support for the new pricing, despite the increased costs, noting that free charging had led to long waits and unnecessary use of chargers. She believes the new fees will improve access to charging stations when needed.
The new fee structure is part of the UAE’s ongoing efforts to foster sustainable transportation and advance towards a greener economy. Last year, the UAE also approved a national policy to expand the EV charging network, aiming to reduce energy consumption in the transport sector by 20%.