NEW DELHI: Consumers will have to pay 10%-20% more for the usage of electricity during peak hours from 1 April 2025, according to the amendments made in the Electricity (Rights of Consumers) Rules. However, the tariff will be 10-20% lower than the normal tariff during the daytime (solar hours).
The power ministry on Friday announced two changes in the Electricity (Rights of Consumers) Rules – introduced Time-of-Day (ToD) tariff, and rationalization of smart metering provisions. As per the ToD mechanism, the power tariff during solar hours or daytime will be 10%-20% less than the normal tariff, while the tariff during peak hours will be available at a premium of 10-20%.
The new tariff will be initially applicable for commercial and Industrial consumers with 10 KW and above consumption from 1 April 2024. For all other consumers except farmers, the rule will be applicable from 1st April 2025.
Time-of-Day tariff will be made effective immediately after the installation of smart meters. “The ToD tariffs, which are separate tariffs for peak hours, Solar hours and normal hours, send price signals to consumers to manage their load according to the tariff. With awareness and effective utilization of the ToD tariff mechanism, consumers can reduce their electricity bill. Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits,” said the power minister R K Singh.
During non-solar hours, thermal, hydropower and gas-based capacity is used. They cost higher than solar power, and this will be reflected in the Time-of-Day tariff. It means consumers can plan their consumption in order to reduce their power costs – planning more activities during solar hours when power costs are less.
Most State Electricity Regulatory Commissions (SERCs) have already implemented ToD tariffs, for large Commercial and Industrial (C&I) consumers. With the installation of smart meters, the ToD metering at the domestic consumer level will be introduced as per tariff policy mandate.
According to the new rules, load revision procedure has also been rationalised in a way that maximum demand would be revised upwards only if sanctioned load has been exceeded at least three times in a financial year. Moreover, smart meters will be read remotely at least once a day and the data will be shared with consumers in order to enable them to make informed decisions on consumption of electricity.