New Power Tariff Rule: Electricity consumers across the country can save up to 20 per cent on power bills by planning use during daylight hours or during the day as the government is set to introduce a ‘time of day’ tariff. The Government of India has introduced two changes to the prevailing power tariff system, through an amendment to the Electricity (Consumer Rights) Rules, 2020. The changes are the introduction of Time of Day (ToD) Tariff and smart rationalization. metering provisions.
Time of Day Tariff
The ‘time of day’ (TOD) tariff provides for different rates during different times of the day and will allow consumers to avoid using electricity for washing clothes, cooking purposes and other purposes during peak hours when power rates are higher. height. “Rather than being charged for electricity at the same rate at all times of the day, the price you pay for electricity will vary according to the time of day. Under the ToD Tariff system, Tariff during solar hours (a period of eight hours per hours in a. day as specified by the State Electricity Regulatory Commission) of the day 10%-20% less than the normal tariff, and the tariff during peak hours will be 10 to 20 percent higher,” said the Ministry of Power in a statement.
The ToD tariff would be applicable for Commercial and Industrial consumers with a Maximum Demand of 10 KW and above, from 1 April 2024. For all other consumers except agricultural consumers, the new rule will be applicable from 1 April 2025.
For those with smart meters, the ToD tariff will apply immediately after those meters are installed. “The Government of India has introduced two changes to the prevailing power tariff system, through an amendment to the Electricity (Consumer Rights) Rules, 2020. The changes are: introduction of Time of Day (ToD) tariff, and rationalization of the provisions regarding smart metering. ,” said a statement from the power ministry on Friday.
Win-win for consumers as well as suppliers
According to Union Minister for Power and New & Renewable Energy RK Singh, the ToD tariff is a win for consumers as well as the electricity suppliers. “The ToD tariffs which include separate tariffs for peak hours, sunshine hours and normal hours, send price signals to consumers to manage their load according to the tariff. With awareness and effective use of the ToD tariff mechanism, consumers can reduce their electricity bills,” Singh said in the statement.
He explained that since solar power is cheaper, the tariff during the solar hours will be less. “During non-solar hours thermal and hydropower capacity as well as gas-based capacity are used. Their costs are higher than solar and this will be reflected in the Day Time Tariff,” said Singh.
The Union Minister said that the ToD mechanism will ensure better grid integration of Renewable Energy sources and facilitate faster energy transition for India. “The ToD tariff will improve the management of renewable generation fluctuations, stimulate an increase in demand during peak RE generation periods and thus increase grid integration of more renewable power,” said Singh.
Most of the State Electricity Regulatory Commissions (SERCs) have already implemented ToD tariffs, for a large category of Commercial and Industrial (C&I) consumers in the country. With the installation of smart meters, ToD metering will be introduced at the domestic consumer level as mandated by the Tariff Policy.
Rules regarding amendment
Regarding the rules for amendments made to the smart metering provision, the ministry said that the government has also simplified the rules for smart metering. “To avoid inconvenience/harassment of the consumers, the existing penalties for increasing the consumer’s demand beyond the maximum permitted load/demand have been reduced,” he said.
As per the amendment to the metering provision, post installation of a smart meter, no penal charges will be levied on a consumer based on the maximum demand recorded by the smart meter for the period prior to the date of installation.
Moreover, the load revision procedure has been streamlined in such a way that the maximum claim will be revised only if the permitted load has been exceeded at least three times in a financial year.
In addition, smart meters will be read remotely at least once a day and the data will be shared with Consumers to enable them to make informed decisions regarding electricity consumption, the Ministry’s statement said.
The government notified the Electricity (Rights of Consumers) Rules, 2020 on December 31, 2020, based on the conviction that power systems exist to serve consumers and that consumers have rights to reliable services and quality electricity.
The Rules seek to ensure that new electricity connections, refunds and other services are phased in and that willful disregard for consumer rights leads to the imposition of penalties on service providers and the payment of compensation to consumers. The current amendment to the Rules continues the measures taken by the government, to empower power consumers, to ensure reliable 24X7 electricity supply at an affordable cost, and to maintain an ecosystem conducive to investment in the power sector.
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