The UAE Cabinet has passed Resolution No. 81 that imposes a new Unified Charging Fees for charging electric vehicles (EVs) in UAE.
Unified Charging Fees
According to the newly published Cabinet resolution No. 81, ev charging service providers in the UAE are required to adhere to a standardized pricing model. The fees are set as follows:
- Express Charging: Minimum of Dh1.20 plus VAT per kWh
- Slow Charging: Minimum of Dh0.70 plus VAT per kWh
These fees are detailed in the resolution published in the Official Gazette on July 8 and will come into effect on September 6, 2024, which is 60 days from the publication date. The unified pricing aims to eliminate the wide variation in current charging rates, with some stations previously offering free charging.
Government and Industry Reactions
Legal and industry experts have welcomed this resolution, highlighting its positive impact on the EV sector. Abdulrahman Nabhan, Chief Financial Officer at Yandex, emphasized that this decision will help regulate the fees based on the type of charging service.
The resolution aims to regulate the utility of electric vehicle services and paves the way for a new era of renewable energy usage as a reliable alternative source of energy.
Mostafa Hegab, Legal Counsel at Mansoor Lootah Advocates and Legal Consultant
Benefits of Unified Charging Fees
- Cost Transparency and Fairness: The unified fee structure ensures that all EV users pay the same rate, regardless of the charging station they use. This transparency fosters trust and eliminates the confusion caused by varying fees at different locations.
- Encouraging EV Adoption: By offering a consistent and affordable charging rate, the UAE government is making electric vehicles a more attractive option for consumers. This move aligns with the country’s vision of increasing the number of EVs on the road, thereby reducing carbon emissions and dependence on fossil fuels.
- Support for Charging Infrastructure Development: The standardized fees are expected to boost investments in EV charging infrastructure. Private and public entities will be more inclined to install charging stations, knowing that the pricing model is regulated and predictable.
Looking Ahead
By implementing unified charging fees for electric vehicles, the UAE is taking a decisive step towards environmental sustainability and promoting the adoption of clean energy. This policy not only benefits EV users but also sets a benchmark for other countries to follow in their pursuit of a greener future.
At YoCharge, we applaud the UAE’s efforts and remain committed to supporting the transition to electric mobility globally. Our innovative EV charging solutions and energy management platforms are designed to empower Charge Point Operators and facilitate the widespread adoption of electric vehicles. Together, we can drive the change towards a cleaner, more sustainable future.