Using AC, cooler at night will be heavy on your pocket; Center to bring new electricity tariff from April 2024

If you are using air conditioner or air cooler to get relief from scorching heat during summer nights, soon it will hit your pocket as you may have to pay higher electricity consumption charges for night time Is. The Government of India has introduced two changes in the prevailing electricity tariff system through amendments to the Electricity (Rights of Consumers) Rules, 2020. The changes are: introduction of Time of Day (ToD) tariffs, and rationalization of smart metering provisions.

What is Time of Day (TOD) Tariff?

Day time tariff brings different pricing for the use of electricity during day and night. “Instead of 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, solar hours (periods of eight hours Tariff during peak hours (a day specified by the State Electricity Regulatory Commission) will be 10%-20% lower than the normal tariff, while the tariff during peak hours will be 10 to 20 per cent higher,” the power ministry said.

This means, while you may be able to save a few bucks during the day, you will have to pay more during the night. Many people use air conditioners during the night and this increases the demand for electricity during that time. Hence, the government has come up with the ToD tariff system. However, the new ToD tariff may not affect households that use air conditioners or coolers equally during day and night as their consumption charges will be balanced.

When will the Time of Day (TOD) tariff be applicable?

TOD tariff will be applicable from 1st April 2024 for commercial and industrial consumers with peak demand of 10 kW and above. However, for domestic consumers except agricultural consumers, it will be applicable from 1 April 2025. “The time of day tariff will be made effective immediately after installation of the smart meter, for consumers with smart meters,” the ministry said.

However, the government is projecting it as a win-win situation. “With awareness and effective use of TOD tariff mechanism, consumers can reduce their electricity bills. Since solar power is cheap, the tariff will be lower during solar power hours, hence benefiting the consumer. Thermal and hydropower as well as gas-based capacity used during non-solar hours – their cost is higher than that of solar power – will be reflected in daytime tariffs. Now consumers can plan their consumption to reduce their power cost – plan more activities during solar hours when power cost is less,” said RK Singh, Union Minister for Power and New & Renewable Energy Said.

Smart meters to replace old meters

ToD tariff will be applicable only after replacement of your old meter with new smart meter. “The Government has also simplified the rules for smart metering. In order to avoid inconvenience/harassment to the consumers, the existing penalty for increase in consumer demand beyond the maximum sanctioned load/demand has been reduced. After amending the metering provision, As per, post-installation of smart meters, no penal charge shall be levied on the consumer based on the maximum demand recorded by the smart meter for the period prior to the installation date,” the power ministry said.

Smart meters will be read remotely at least once a day and the data will be shared with consumers so that they can take informed decisions about electricity consumption. This means that the consumer will get the details of electricity usage during the day and night so that they can increase or decrease their energy consumption accordingly.