Government introduces changes to the power tariff system that will help citizens save up to 20% on their electricity bills

The government of India has introduced amendments to the existing power tariff system that will help citizens to save up to 20% on their electricity bills. By taking considerable measures for consumption of power during the solar hours masses can now reduce its wastage with the help of the ‘time of the day’ tariff implemented by the government.

Two changes have been made to the power tariff system, by making amendments to the Electricity Rules, 2020. First is the introduction to Time of Day (TOD) while the other is the rationalization of smart measuring provisions.

The Ministry of Power stated that under the ToD tariff system, the tariff during the daytime of 8 hours will be 10 percent and 20 percent less as compared to the normal tariff. While the tariff during peak hours will be 10 percent to 20 percent higher.

ToD tariff would be applicable to industrial and commercial consumers, who have the demand for power up to 10KW and more, from the 1^st of April 2024. And for all customers, the new tariff system will be in effect from the 1^st of April 2025, except for the Agricultural consumers. ToD will be implemented when all the smart meters are installed for the consumers.

The government also stated the rules for smart metering in a simplified manner, “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. The 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 a day and the data shall be shared with Consumers in order to enable them to make informed decisions about the consumption of electricity,” as quoted by NDTV news.

The changes are a complete win-win for the consumers as they will be able to plan accordingly to save up electricity and utilize it in the best possible manner.