Get ready to pay more for power at night

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The government is preparing to make new rules regarding the consumption of electricity. Under this, ‘time of day’ i.e. TOD norm will be implemented to decide power rates. After the implementation of this system, electricity consumers across the country will have to pay lower rate during during day time and higher rate during night time. In the summer season, even if there is a high demand during the peak hour, a higher cost of electricity will have to be paid. The government says that under the new system, different rates of electricity will be applicable for different times of the day. In the new tariff system under the Time of Day tariff, the rate of electricity in solar hours will be 10 to 20 percent lower than the normal rate. In such a situation, electricity consumers will be able to save up to 20 percent in their electricity bills by managing solar hours i.e. day time electricity consumption.

Under the new provision, the rate of electricity will be 20 percent higher during night time and peak hours. Obviously, most people stay out of the house during the day. Due to this, the power consumption is less during the day, whereas the use of AC, cooler, room heater etc. is more during the night. Due to this, consumers will have to pay more electricity bills in the new system.

When will the system be implemented? According to the statement issued by the Ministry of Power, the TOD fee system will be applicable from April 1, 2024 for commercial and industrial consumers with demand of 10 kW and above. This rule will be applicable from April 1, 2025 for all other consumers except agriculture. However, this system will be available to consumers with smart meters. To take advantage of this facility, a new meter will have to be installed. Obviously, for this also, consumers will have to spend lump sum money.