New Delhi: Introduction of Time-of-Day Electricity Charges, Simplification of Smart Metering Rules, Union Government Amends Electricity (Consumer Rights) Rules, 2020
According to the press release issued in this regard, “By amending the Electricity (Consumer Rights) Rules, 2020, the Central Government has introduced two changes in the existing electricity tariff system. The changes are introduction of Time of Day (DOT) tariff and alignment of smart metering rules.
Introduction of Time of Day (DoD) Tariff: DOT (Time of Day) means that the price of electricity varies according to the time of day, rather than charging the same rate for electricity at all times of the day. Under this tariff system, the tariff charged during off-peak hours of solar power will be 10%-20% lower than the current normal tariff charged throughout the day. This DOT time depends on the time specified by the State Electricity Regulatory Commission which is 8 hours in a day. At the same time, the charge is 10 to 20 percent higher during peak hours for other electricity usage.
DOT tariff will be applicable for commercial and industrial consumers with peak demand of 10 kW and above from 1st April 2024 and for all consumers except agricultural consumers from 1st April 2025. Immediately after installation of smart meter, daytime tariff will come into force for smart meter installed consumers.
Union Minister for Power and New and Renewable Energy RK Singh has termed the DOT project as a win for consumers and the power system.
In this regard, he said, “DOT tariff includes separate charges for peak hours, solar hours and normal hours. By using DOT tariff system consciously and effectively, consumers can reduce their electricity bill. As solar power is cheaper, solar hour charges are lower. So consumers benefit. .In non-solar hours thermal and hydroelectricity and gas-based electricity are used.
Their costs are higher than solar electricity. This will be reflected in the daytime charges. Now consumers can plan their consumption to reduce their electricity costs. More activities can be scheduled during solar hours when electricity costs are lower. The DOT system will ensure integration of a better infrastructure of renewable energy sources, thereby leading to a faster energy transition for India,” he said.
Most of the State Electricity Regulatory Commissions (SERCs) have already implemented DOT charges for large commercial and industrial (C&I) category consumers in the country. With the installation of smart meters, the DOD metering tariff policy will be introduced at the domestic consumer level as mandated.
Provisions related to amendment in Smart Metering Rule: The government has also simplified the rules for smart metering. In order to avoid inconvenience to the consumers, the existing penalties for increasing the demand of consumers above the maximum permissible load / demand have been reduced. As per the amendment to the Meter Rule, after installation of a smart meter, no penalty charge will be levied on the consumer based on the maximum demand recorded by the smart meter for the period prior to the date of installation. The load revision procedure has also been streamlined so that the maximum demand is revised upwards only if the permissible load is exceeded at least three times in a financial year.
Electricity (Consumer Rights) Rules, 2020 were announced by the government on 31st December, 2020 based on the belief that electricity systems exist to serve consumers and consumers have rights to get reliable services and quality electricity. These rules ensure that new electricity connections, refunds and other services are provided within a specified period, impose penalties on service providers resulting in willful neglect of consumer rights, and provide compensation to consumers.
The present rule amendment is a continuation of the steps taken by the government to empower power consumers, ensure reliable 24-hour power supply at affordable rates and maintain an enabling environment for investment in the power sector,” said a press release issued by the government.
