# HPCL Seeks EV Charging Tariff Reforms as Low Utilisation Challenges Returns

> HPCL wants lower demand charges and faster grid connections to improve public EV charging economics, with around 6,000 chargers targeted by FY27-end.
- **Author**: Prakash
- **Published**: 2026-10-16
- **Modified**: 2026-10-19
- **Category**: news
- **URL**: https://bestev.in/news/why-hpcl-wants-lower-power-charges-for-indias-ev-charging-stations-20261016

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HPCL has called for electricity tariff reforms, lower demand charges and faster power connections to improve the economics of public EV charging, according to a Financial Express report published on October 15.

The company's argument highlights the difficulty of operating capital-intensive charging equipment while demand at individual sites is still developing.

## What HPCL wants changed

HPCL is seeking a coordinated review of electricity tariffs, demand charges, grid-connection costs and service-charge ceilings.

Executive director for retail Debasish Basak said DC fast chargers may need roughly 15-25% utilisation for attractive economics, depending on capital costs, electricity tariffs and operating expenses. This is a conditional estimate rather than a universal break-even threshold.

## Network and expansion plans

The report puts HPCL's network at 5,826 charging facilities, with around 6,000 chargers targeted by FY27-end.

HPCL also plans approximately 100 units rated at 240kW along strategic highway corridors. It is targeting a commercially sustainable charging business by March 2030.

## Why demand charges matter

BestEV's assessment is that the fixed portion of an electricity bill can be especially significant at a lightly used charging site.

Energy charges relate to electricity consumed, while demand charges can relate to contracted or recorded power capacity, depending on local tariff rules. A high-power installation may therefore face costs even when few drivers use it.

As utilisation increases, those fixed costs can be spread across more charging sessions. Location choice and repeat customers become central to the business case.

## Would reform make charging cheaper?

Lower operator costs could support investment and improve site viability. They do not automatically establish a lower retail charging price.

Drivers will still need to compare the displayed tariff, charging power, parking charges and reliability. A cheaper session can offer poor value if the charger is inaccessible or repeatedly unavailable.

## What fleet operators should watch

Fleet demand can be more predictable than occasional highway traffic. Operators evaluating public or depot charging should compare the cost of the electrical connection, the vehicle schedule and the time needed to charge.

The broader issue is building sites that remain dependable after installation. HPCL's request underlines why the number of chargers alone cannot describe the health of India's charging ecosystem.

Source: [Financial Express, October 15](https://www.financialexpress.com/business/industry-hpcl-seeks-tariff-reforms-to-improve-ev-charging-viability-4362248/).

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