CHENNAI: TNEB is expected to take three more years to implement the Time of Day (ToD) power tariff for its 2.3 crore domestic consumers across the state, according to top officials. Currently, only industrial and commercial consumers are involved in this process. The ToD power tariff is a system where electricity charges vary depending on usage time.
As per the Electricity (Rights of Consumers) Rules 2023, the tariff during solar hours (eight hours a day, as specified by the State Electricity Regulatory Commission) will be 10% to 20% lower than the normal rate. However, it will be 10% to 20% higher during peak hours.
The ToD tariff should have come into effect for commercial and industrial consumers with a maximum demand of 10 KW and above from April 1, 2024, and for all other consumers, except agricultural users, from April 1, 2025. However, the TNEB has not made any progress in this direction, despite the availability of ToD facilities for high-tension (HT) consumers.
The installation of smart meters, necessary for switching to this tariff system, is yet to happen in Tamil Nadu. The tender process for these smart meters has been ongoing for the past two years.
The ToD power tariff will not apply to consumers who use only the free 100 units of electricity, a senior official said.
“We have around 35 lakh commercial consumers, and we currently charge a flat 20% peak hour fee (for LT consumers), as we have not yet set specific slots for ToD charges,” he said. The official further said that the Tamil Nadu government has been covering the MSMEs’ peak-hour charges, and this subsidy will continue until the smart meters are installed.
K Venkatachalam, chief advisor of Tamil Nadu Spinning Mills Association, said, “We (HT consumers) are currently paying 25% for peak-hour usage (6 am to 10 am and 6 pm to 10 pm), but as per the Ministry of Power’s guidelines, this should not exceed 20%. The utility must reduce the charges by 5% immediately,” he said.
He also suggested revising the peak-hour slots, stating, “The current timings were set after the tariff revision in September 2022. We have been requesting a scientific study to adjust the slots based on power demand.”
E Natarajan, state general secretary of the Bharathiya Electricity Engineers Association, said, “When ToD is implemented, many consumers can adjust their usage during non-peak hours, saving on costs. This will also help TNEB maintain grid stability.”
Not smart yet
The installation of smart meters, necessary for switching to this tariff system, is yet to happen. The tender process has been ongoing for the past two years. ToD tariff will not apply to consumers who use only the free 100 units of electricity
