The Power Ministry of India is all set to roll out a new tariff system, under which consumers will be charged 10-20% less than the standard tariff during solar (or daytime) hours. Moreover, the power rate will be 10-20% higher during peak hours.
The ‘Time of the day’ (ToD) tariff will allow consumers to schedule their energy-intensive activities such as laundry and cooking during the daytime hours and reduce their monthly bills.
“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. With awareness and effective utilization of the ToD tariff mechanism, consumers can reduce their electricity bills,” said Mr. R.K Singh, Union Minister of Power and New and Renewable Energy.
The ToD rate will come into effect from April 1st, 2024 for commercial and industrial consumers with a demand of at least 10kW. For consumers from all other segments (except agriculture), the new rate will be applicable from 1st April 2025.
For those individuals who are already getting smart meters, the rule will be in effect as soon as the meter is installed.
Mr. Singh explained that since solar is cheaper than conventional electricity, the tariff during the daytime hours will be reduced. However, during non-solar hours, fossil-fuel-based energy will be utilized, which incurs higher costs, leading to higher rates during those periods.
The new system will also improve the integration of renewable energy into the grid, leading to a faster energy transition in the country.
Additionally, the government also plans to simplify the rules for smart metering to make it easier for consumers to monitor and plan their energy consumption.
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Resource: The Economic Times
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