What’s Our Government’s Plan On ToD Tariff Implementation

Recently, the Ministry of Power has issued the Electricity (Rights of Consumers) Amendment Rules, 2023 – wherein the rule for Time of Day (ToD) Tariff has also been specified. As per the current plan, for commercial and industrial consumers who have the maximum demand more than 10 kW – ToD tariff will be effective from a date not later than April 1, 2024. For others, except agricultural consumers, it will be effective from April 1, 2025.

ToD is a type of tariff structure that is based on – at what time of a day the power has been consumed. As per this system the price per unit of energy consumed will vary based on the time, i.e., morning, noon, evening, or night.

According to the government’s plan the following practices will be followed after installation of smart meters for the consumers. ToD tariff, during the peak period of the day, for commercial and industrial consumers shall not be less than 1.20 times the normal tariff and for other consumers it shall not be less than 1.10 times the normal tariff. Tariff for solar hours, of the day, to be specified by the State Commission shall be at least twenty 20% less than the normal tariff for that category of consumers. The duration of peak hours shall not be more than solar hours (generally eight hours) as notified by the concerned State Electricity Regulatory Commission or State Load Despatch Centre.

I welcome the decision considering that if implemented properly, it will improve billing efficiency and cut T&D losses, which will not only improve the financial health of the power utilities but also benefit the honest consumers.

Publisher & Editor-In-Chief

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