The Government of India has made two changes to the applicable energy tariff system
New Delhi:
The government of India has made two changes to the prevailing energy tariff system and now consumers across the country can save up to 20 percent on energy bills by scheduling usage during solar hours or during the day as the government plans a ‘time of the time’. daily rate.
The Government of India has made two changes to the prevailing energy tariff system, through an Electricity (Rights of Consumers) Rules Amendment, 2020.
The changes include the introduction of the Time of Day (ToD) tariff and the rationalization of smart metering provisions, the Department of Energy said.
Under the ToD rate system, the rate during solar hours (duration of eight hours in a day as specified by the State Electricity Regulatory Commission) of the day will be 10 to 20 percent lower than the normal rate, while the rate during peak hours will be 10 to 20 percent higher, according to the release.
The ToD rate would apply to commercial and industrial consumers with a maximum demand of 10 KW and above, from April 1, 2024, and to all other consumers except agricultural consumers, at the latest from April 1, 2025. The Time of Day rate will be immediately after installation of smart meters, for consumers with smart meters, it further said.
Union Power and New and Renewable Energy Minister RK Singh said the ToD is a win-win for both the consumer and the energy system.
“The TOD rates, consisting of separate rates for peak, solar and normal hours, send price signals to consumers to manage their load according to the rate. With awareness and effective use of the ToD rate mechanism, consumers can reduce their electricity bills,” he said.
“Since solar energy is cheaper, the rate will be lower during the solar hours, so the consumer will benefit. During non-solar hours, both thermal and hydro as well as gas-based capacity are used – their costs are higher than solar energy – this will be reflected in the time rate. Now consumers can plan their consumption to reduce their energy costs – by scheduling more activities during solar hours when energy costs are lower,” he added
The Union minister said that the ToD mechanism will also ensure better grid integration of renewables, facilitating a faster energy transition for India.
“The ToD tariff will improve the management of fluctuations in renewable energy generation, drive an increase in demand during periods of high RE generation hours and thereby increase the grid integration of a greater amount of renewable energy,” said RK Singh.
Most of the State Electricity Regulatory Commissions (SERCs) have already introduced ToD tariffs for major commercial and industrial (CI) categories of consumers in the country. With the installation of smart meters, ToD metering is introduced at the household consumer level as per the Tariff Policy mandate.
Time of Day (TOD) tariff, recognized worldwide in electricity industries, as an important Demand Side Management (DSM) measure used as a means to incentivize consumers to shift some of their loads from peak to off-peak times , improving the load factor of the system by reducing the demand on the system during the peak period. Several legal provisions already exist to enable and promote the implementation of the ToD tariff (that is Tariff Policy, 2016, Electricity Act, 2003 and National Electricity Policy, 2005), the ministry added.
The government has also simplified the rules for smart metering. To avoid inconvenience/harassment to consumers, the existing penalties for an increase in consumer demand above the maximum allowable load/demand have been reduced.
The Ministry of Energy said: “According to the change in metering provision, after installation of a smart meter, no fines will be imposed on a consumer based on the maximum demand recorded by the smart meter for the period before the installation date. The procedure for the tax review has also been rationalized so that the maximum demand is only revised upwards if the sanctioned load has been exceeded at least three times in a financial year. In addition, smart meters must be read remotely at least once a day and the data shared with consumers to enable them to make informed decisions about electricity consumption.”
The Electricity (Consumer Rights) 2020 Rules were released by the Government on December 31, 2020, based on the belief that electricity systems exist to serve consumers and that consumers have a right to reliable services and quality electricity.
It further stated: “The rules are designed to ensure that new electricity connections, refunds and other services are given on a time-bound basis and that willful disregard for consumer rights will result in the imposition of fines on service providers and payment of damages to consumers.”
The current rule change is a continuation of measures taken by the government to empower power consumers, to ensure a 24/7 reliable electricity supply at affordable costs and to create a favorable ecosystem for energy sector investment to maintain, the release said.
(Except for the headline, this story has not been edited by NewsMadura staff and is being published from a syndicated feed.)
