State government to bring in new power tariff system

Guwahati, Sept 29: Though some organisations of the state are opposing the installation of smart meters, the state power ministry is bringing in new rules that will make smart meters mandatory for all consumers.

The government has amended the provisions of the Electricity (Rights of Consumers) Rules, 2020, and decided to introduce a Time of Day (ToD) tariff. The new system will be made applicable for all consumers from April 1, 2025, and for the introduction of the system, smart meters will become mandatory.

Official sources told The Assam Tribune that under the provisions of the ToD tariff, rather than being charged for electricity at the same rate at all times of the day, the price the consumers pay for electricity would vary according to the time of day power is consumed.

Under the ToD tariff system, the tariff during solar hours (duration of 8 hours in a day as specified by the State Electricity Regulatory Commission) of the day will be 10 to 20 percent less than the normal tariff, while the tariff during peak hours will be 10 to 20 percent higher. The ToD tariff was made applicable for commercial and industrial consumers having a maximum demand of 10 KW and above from April 1 this year, while the same rule would become applicable to all from April 1 next year.

Official sources said that the ToD is a win-win situation for consumers as well as the power system. "The ToD tariffs, comprising separate tariffs for peak hours, solar hours, and normal hours, will send price signals to consumers to manage their load according to the tariff. With awareness and effective utilisation of the ToD tariff mechanism, consumers can reduce their electricity bills. Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits. During non-solar hours, thermal and hydropower, as well as gas-based capacity, are used, and their costs are higher than that of solar power. This will be reflected in the ToD tariff. Consumers would now be able to plan their electric consumption according to power costs, like planning activities during solar hours when power costs are less," sources added.

Sources also pointed out that the ToD mechanism would also ensure better grid integration of renewable energy sources, thereby facilitating a faster energy transition for India. The ToD tariff is recognised globally across electricity industries as an important demand-side management measure that is used as a means of incentivising consumers to shift a portion of their loads from peak times to off-peak times, thereby improving the system load factor by reducing the demand on the system during peak periods. Various statutory provisions already exist to enable and promote implementation of the ToD tariff (i.e., Tariff Policy, 2016, Electricity Act, 2003, and National Electricity Policy, 2005).

By

R Dutta Choudhury