New Delhi | The government is going to implement the rule of ‘time of day’ (ToD) for fixing electricity rates. With this, electricity consumers across the country will be able to save up to 20 percent on their electricity bills by managing electricity consumption during solar hours (day time). Under the TOD rule, different rates of electricity will be applicable for different times of the day. With the implementation of this system, customers will be able to avoid doing high electricity consumption tasks like washing clothes and cooking during peak hours.
Under the new system, consumers will be able to reduce their electricity bills by doing tasks like washing clothes or cooking food during normal working hours. The TOD fee regime will be applicable from April 1, 2024 for commercial and industrial consumers with a demand of 10 kW and above. This rule will be applicable from April 1, 2025 for all other consumers except agriculture. However, for consumers with smart meters, the TOD system will be applicable only when they get such meters installed.
The Ministry of Power said in a statement on Friday, “The Government of India has made two changes in the existing electricity tariff system by amending the Electricity (Consumer Rights) Rules, 2020. These changes pertain to introduction of Time of Day (TOD) tariff system and rationalization of provisions relating to smart meters.” Accordingly, instead of being charged for electricity at the same rate throughout the day, the price paid by the user for electricity will vary at different times of the day.
According to the statement, under the new tariff system, the rate of electricity in solar hours (eight hours fixed by the State Electricity Regulatory Commission) will be 10 to 20 percent less than the normal rate, while it will be 10 to 20 percent during peak hours. Will be more Union Minister for Power and New and Renewable Energy RK Singh believes that the TOD system will definitely benefit consumers and electricity providers.
