Power to cost more during peak hours and vice versa

Electricity usage may cost less during the day and more during night, with the Union power ministry preparing to roll out the so-called Time of Day (ToD) tariff system.

- Saurav Anand & Rituraj Baruah

NEW DELHI: During solar hours, a stretch of eight hours set by the respective State Electricity Regulatory Commission, tariff will be 10-20% below normal, while during peak hours at night, tariff will be correspondingly higher, a power ministry statement said.

“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 utilization of ToD tariff mechanism, consumers can reduce their electricity bills," Union power minister R.K. Singh said.

ToD tariffs will kick in first for commercial and industrial (C&I) consumers with a maximum demand of 10 KW and above beginning 1 April, 2024; and a year later for most other consumers except in agriculture.