Central Government Amends Electricity (Rights of Consumers) Rules, 2020 by Introducing Time of Day (ToD) Tariff and Simplification of Smart Metering rules

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Power Tariff to be 20% less during Solar Hours, 10%-20% Higher during Peak Hours; Consumers to benefit from effective utilization of ToD provision

Time of Day Tariff A Win-Win: Enables Consumers to Reduce Electricity Bills, Helps Power System to Use Resources More Efficiently: Union Power and New & Renewable Energy Minister R. K. Singh

Mechanism to ensure better grid integration of Renewable Energy sources and faster energy transition for India: Union Power and NRE Minister R. K. Singh

The Government of India has introduced two changes to the prevailing power tariff system, through an amendment to the Electricity (Rights of Consumers) Rules, 2020. The changes are: introduction of Time of Day (ToD) Tariff, and rationalization of smart metering provisions.

Introduction of Time of Day (ToD) Tariff

Rather than being charged for electricity at the same rate at all times of the day, the price you pay for electricity will vary according to the time of day.  Under the ToD Tariff system, Tariff during solar hours (duration of eight hours in a day as specified by the State Electricity Regulatory Commission) of the day shall be 10%-20% less than the normal tariff, while the tariff during peak hours will be 10 to 20 percent higher. ToD tariff would be applicable for Commercial and Industrial consumers having Maximum demand of 10 KW and above, from 1st April, 2024 and for all other consumers except agricultural consumers, latest from 1st April, 2025. Time of Day tariff shall be made effective immediately after installation of smart meters, for the consumers with smart meters.

Most of the State Electricity Regulatory Commissions (SERCs) have already implemented ToD tariffs, for large Commercial and Industrial (C&I) category of consumers in the country. With installation of smart meters, the ToD metering at domestic consumer level will be introduced as per Tariff Policy mandate.

Time of Day (TOD) tariff, is recognized globally across electricity industries, as an important Demand Side Management (DSM) measure which is used as a means of incentivizing consumers to shift a portion of their loads from peak times to off-peak times, thereby improving the system load factor by reducing the demand on the system during peak period. Various statutory provisions already exist to enable and promote implementation of ToD tariff (i.e. Tariff Policy, 2016, Electricity Act, 2003 and National Electricity Policy, 2005).

Rules regarding amendment made in smart metering provision

Government has also simplified the rules for smart metering. To avoid inconvenience / harassment of the consumers, the existing penalties for increase in consumer’s demand beyond the maximum sanctioned load / demand have been reduced.  As per the amendment in metering provision, post installation of a smart meter, no penal charges will be imposed on a consumer based on maximum demand recorded by the smart meter for the period before installation date. Load revision procedure has also been rationalized in a way that maximum demand shall be revised upwards only if sanctioned load has been exceeded at least three times in a financial year. Moreover, smart meters shall be read remotely at least once in a day and the data shall be shared with Consumers in order to enable them to take informed decision about consumption of electricity.

The Electricity (Rights of Consumers) Rules, 2020 were notified by the government on December 31, 2020, based on the conviction that power systems exist to serve consumers and that consumers have rights to get reliable services and quality electricity. The Rules seek to ensure that new electricity connections, refunds and other services are given in time-bound manner and that willful disregard to consumer rights results in levying of penalties on service providers and payment of compensation to consumers.

The current amendment to the Rules is a continuation of the measures taken by the government, to empower power consumers, to ensure 24X7 reliable electricity supply at affordable cost, and to maintain a conducive ecosystem for investment in the power sector.

The notifications of the Rules in December 2020 and amendments since then can be found below.

The Electricity (Rights of Consumers) Rules, 2020

The Electricity (Rights of Consumers) Amendment Rules, 2021

The Electricity (Rights of Consumers) Amendment Rules, 2022

The Electricity (Rights of Consumers) Amendment Rules, 2023

Posted On: 23 JUN 2023 10:29AM by PIB Delhi

PIB

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