synopsis

According to a official release, ToD tariff would be applicable for commercial and industrial consumers, having maximum demand of 10 KW and above, from April 1, 2024, and a year later for most other consumers except those in the agricultural sector.

The power ministry on Friday (June 23) said that the central government is planning to introduce varying tariff for electricity for different times during the day. Under the amendments to the country's electricity rules, power tariffs could be reduced by up to 20 percent during the day and increase by up to 20 percent during peak night hours.

The tariff system, known as the Time of Day (ToD), consumers will be charged varying rates for electricity based on the time of day. The tariff during solar hours, a duration of eight hours as specified by the State Electricity Regulatory Commission, will be 10-20 percent lower than the normal tariff.

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During peak hours, the tariff will be 10-20 percent higher. These changes are aimed at encouraging consumers to shift their electricity usage to off-peak times and promote the use of renewable energy sources.

According to a official release, ToD tariff would be applicable for commercial and industrial consumers, having maximum demand of 10 KW and above, from April 1, 2024, and a year later for most other consumers except those in the agricultural sector.

The new tariff will be made effective immediately after installation of smart metres, it added.

Union Power and New & Renewable Energy Minister RK Singh said that the ToD is a win-win for consumers as well as the power system. "The TOD tariffs comprising separate tariffs for peak hours, Solar hours and normal hours, send price signals to consumers to manage their load according to the Tariff," Singh said.

"During non-solar hours thermal and hydro power as well as gas-based capacity is used – their costs are higher than that of solar power – this will be reflected in Time of Day Tariff. Now consumers can plan their consumption in order to reduce their power costs – planning more activities during solar hours when power costs are less," Singh said.

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For most of the nation's commercial and industrial (C&I) clients, ToD rates have already been introduced by State Electricity Regulatory Commissions (SERCs). ToD metering will be implemented at the home customer level with the installation of smart metres in accordance with mandated tariff policy.