DEHRADUN: Uttarakhand is poised to become the first state in India to introduce time-of-day power tariffs for its 15.87 lakh electricity consumers. Speaking to this newspaper, Uttarakhand Power Corporation Ltd managing director Anil Kumar said, “The idea is to encourage people to use electricity judiciously,” adding with the new system, consumers will pay differently for power usage during day, evening, and night.
Under the new system, power rates will be divided into three slots, with prices varying accordingly. “Peak daytime hours will offer the cheapest tariffs, while night time hours will have the highest rates,” MD Kumar said.
The rationale behind this differential pricing lies in the reduced cost of solar energy production during daytime hours. “The cost of producing power from solar energy during the day is significantly lower,” said Kumar. “This innovative approach aims to promote efficient energy usage and encourage consumers to shift non-essential load to off-peak hours.”
UPCL officials confirm that a control room has been established at the headquarters, and smart meter installation on transformers is nearing completion. “During the day, the UPCL purchases solar power at Rs 2-2.5 per unit, making it feasible to offer cheaper electricity to consumers,” an official said.
UPCL public relations officer Pankaj Sharma said: “At night, power supply comes from coal and gas, costing Rs 7-8 per unit, making nighttime tariffs more expensive. “Consumers will be charged differently depending on the hour of usage,” Sharma said.
The new system incentivizes residents to utilize electricity efficiently. Household chores like laundry and irrigation can be done during the day when rates are lower, while minimizing usage at night to save costs. “This initiative promotes judicious energy consumption, benefiting both consumers and the environment,”
Sharma said PRO Pankaj Sharma highlighted the benefits of the new system, saying, “Consumers will no longer worry about bill payments. Through our mobile app, users can track real-time consumption, reduce power waste, and eliminate monthly meter readings.”
CM Pushkar Singh Dhami has announced that the Centre’s decision to increase Uttarakhand’s additional power quota by 180 MW, extending its validity until June 30, 2025, will significantly benefit the state’s tourism industry. This development comes after the Centre allocated an additional 300 MW of power to Uttarakhand on September 26, valid until March 31, next year.
Last year, the Centre introduced two changes to the prevailing power tariff system by amending the Electricity (Rights of Consumers) Rules, 2020. These changes may have an impact on the electricity bills of customers across the country.
Green dream: Dynamic pricing structure
A time-of-day (ToD) tariff is a dynamic pricing structure that adjusts the cost of electricity based on when it’s used. The move is expected to help India work towards its target of achieving 65% of its energy capacity from non-fossil fuels by 2030 and net zero emissions by 2070.