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

Source: The post is based on the article “Central Government Amends Electricity (Rights of Consumers) Rules, 2020 by Introducing Time of Day (ToD) Tariff and Simplification of Smart Metering rules” published in PIB on 23rd June 2023

What is the News?

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. 

What are the changes introduced by the government in the prevailing power tariff system?

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 one pay for electricity will vary according to the time of day.  

– Under the ToD Tariff system, Tariffs 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% 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 from 1st April 2025. 

– Time of Day tariff shall be made effective immediately after installation of smart meters, for the consumers with smart meters.

Changes made in smart metering provision: The government has also simplified the rules for smart metering. 

– To avoid inconvenience/harassment of the consumers, the existing penalties for the increase in consumer demand beyond the maximum sanctioned load/demand have been reduced.  

– As per the amendment in the metering provision, post-installation of a smart meter, no penal charges will be imposed on a consumer based on the maximum demand recorded by the smart meter for the period before the installation date. 

– Load revision procedure has also been rationalized in a way that maximum demand shall be revised upwards only if the 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 make informed decisions about the consumption of electricity.