A new UAE cabinet resolution has specified a unified pricing structure for charging electric vehicles (EV) in the country. The revised fee structure stipulates that service providers should charge a minimum of Dh1.20 plus VAT per kWh for an ‘express’ charging service and a minimum of Dh0.70 plus VAT per kWh for a ‘slow’ one.
The service fees have been specified in Cabinet resolution No. 81 – a copy of which Khaleej Times has seen – and published in the Official Gazette on July 8. It is not immediately clear when or how the new unified fees will be levied, although the cabinet resolution states it will be effective 60 days from the date of publication in the Official Gazette. The decision will, therefore, be effective from September 6, according to legal expert Abdulrahman Nabhan.
Nabhan, the chief financial officer at Yandex, who examined the new amendment, said: “The decision imposes fees on electric cars, depending on the type of charging.”
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This move comes as part of the government’s efforts to regulate and standardise the provision of EV charging infrastructure. Currently, the rates at charging stations vary widely, with some being offered for free. The Council of Ministers has also retained the authority to amend these fees as necessary, including making additions, deletions, or other adjustments to the fee structure.
Earlier this year, UAEV, the first EV charging network fully owned by the government, was launched with plans to instal 100 charging stations across the country. In April, fuel company ADNOC group had also revealed plans to install more than 500 new fast and superfast chargers over the next few years. EVs have seen a huge rise in demand, with their sale in the UAE almost quadrupling in 2023 to reach 11.3 per cent from just 3.7 per cent in 2022.
Welcome move
Lawyers and industry experts have welcomed the move, saying it sets a good precedent. “The resolution aims to regulate the utility of the electric vehicles’ services,” said Mostafa Hegab, Legal Counsel at Mansoor Lootah Advocates and Legal Consultants. “It is a step to pave the way for a new era of renewable energy usage as a reliable alternative source of energy.”
In 2023, a UAE official had said the country would develop a pricing strategy for charging EVs.
Hegab added that the decision is beneficial for the industry. “The resolution will encourage investors in the industry to install more renewable energy sources such as solar panels,” he said. He also clarified that although users who were previously using the charging services for free will have to pay for it, it will not make a significant impact. “Even after the announcement of the new law, consumers would still find it cheaper and more affordable than fossil fuel,” he said.
Several online forums of EV owners have welcomed the move saying it would reduce crowding around superchargers, and ensure that chargers in major highways and cities would be available when needed.
Ensured availability
EV owner Shireen M., who commutes between Dubai and Abu Dhabi regularly, said the move would increase her expenses but she was happy.
“Often, I would find people using chargers in public places despite not needing it because it was free,” she said. “I have spent several hours waiting in line just to charge for 10 minutes so that I had enough charge to get home, while others would be charging up to 100 percent just because they did not want to pay for it. This move ensures that the chargers would be free and available when you need it urgently.”
The new fee structure is part of the UAE’s broader efforts to promote sustainable transportation and transition towards a greener economy.
Last year, the country had also approved a national policy to build a network of electric vehicle chargers in the country. The policy is expected to contribute in reducing energy consumption in the transport sector by 20 per cent.