Now, peak hour shocker awaits power consumers
The charges will be cheaper during the night and solar generation hours while it will be costlier during the peak hours.
Representative image
CHENNAI: Consuming electricity during the peak hours in the morning and evening will increase power tariff by 25 per cent from next April 1 for industrial units and from 2025 for domestic consumers. This is mandated by the Union Power Ministry’s latest amendment to the Electricity (Rights of Consumers) Rules, which, critics argue, is more stick than carrot.
The Centre amended the rules to enforce the implementation of the time of day (ToD) tariff for all consumers – except agricultural consumers – after the installation of smart meters. The amendment mandates the introduction of the ToD tariff for commercial and industrial consumers having a maximum demand of 10 KW and above from April 1, 2024, and from April 1, 2025, for the rest.
Under this tariff, energy charges vary according to the time of the day rather than being charged for electricity at the same rate throughout the day. The charges will be cheaper during the night and solar generation hours while it will be costlier during the peak hours.
The Tamil Nadu Electricity Regulatory Commission has declared 6 am to 10 am and 6 pm to 10 pm as peak hours and 10 pm to 5 am as non-peak hours. As per last year’s tariff order, the energy consumption during peak hours would cost 25 per cent extra while the rebate offered during non-peak hours is only 5 per cent.
The ToD is applicable for all HT consumers, except lift irrigation, temporary and public charging stations, and LT consumers - government and private educational institutions, industries, and IT services.
Union Power and New & Renewable Energy Minister RK Singh said ToD tariff is a win-win for consumers as well as the electricity providers.
“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 utilisation of ToD tariff mechanism, consumers can reduce their electricity bills,” Singh said.
Coimbatore Consumer Cause Secretary K Kathirmathiyon said the ToD tariff should not be implemented for domestic and agriculture consumers. “Usually, the power consumption would be more during the evening hours at homes when they use lights, TVs, fans, and air-conditioners. Domestic power usage should not be equated with that of industrial and commercial consumers. If it is implemented, there will be stiff resistance from the people,” he said.
In another change, the Centre has also simplified rules for smart metering. “To avoid inconvenience and harassment of the consumers, the existing penalties for the increase in consumer’s demand beyond the maximum sanctioned load/demand have been reduced,” it said.
Smart meters should be read remotely at least once a day and the data should be shared with consumers in order to enable them to make informed decisions about the consumption of electricity, it added.
