New tariff rule to allow up to 20 per cent saving in power bills by planning usage

The ‘time of the day’ (ToD) tariff provides for varying rates during different times of the day. File pic/Satej Shinde

Electricity consumers across the country will soon be able to save up to 20 per cent in power bills by planning usage during solar hours or day time as the government is set to implement ‘time of the day' tariff. The ‘time of the day' (ToD) tariff provides for varying rates during different times of the day and it will allow consumers to avoid electricity usage for washing clothes, cooking and other purposes during peak hours when power rates are higher.

Consumers can now schedule their work like washing or cooking during off-peak hours (daytime or solar hours) when tariff is lower. ToD tariff would be applicable for commercial and industrial consumers, having demand of 10 KW and above, from April 1, 2024. For all other categories of consumers except agricultural, the new rule will be applicable from April 1, 2025.

For those with smart meters, ToD tariff will be effective immediately after installation of such meters. Under the new tariff system, a power ministry statement said, the rate of electricity during solar hours (eight hours in a day as specified by the State Electricity Regulatory Commission) shall be 10 per cent to 20 per cent less than the normal charges, while it will be 10 to 20 per cent higher during peak hours. According to Union Power and New & Renewable Energy Minister R K Singh, ToD tariff is a win-win for consumers as well as electricity providers.

April 1
When in 2024 the ToD tariff will be applicable to industrial consumers

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