Govt to cut power tariff during solar hours, raise them during peak hours

The government has amended the Electricity (Rights of Consumers) Rules, 2020 by introducing time of day (ToD) tariff and rationalising smart metering provisions.

Under the ToD, rather than being charged for electricity at the same rate at all times of the day, the price a consumer pays for electricity will vary according to the time of day.

In other words, 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 percent to 20 percent 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 April 1, 2024 and for all other consumers except agricultural consumers, latest from April 1, 2025. The ToD shall be made effective immediately after installation of smart meters, for the consumers with smart meters, Power Ministry sources said.