Electrical Revolution

What is Time of Day ( ToD )Tariff?

In this post, time of day tariff, solar hours, peak load tariff, off peak load tariff, smart metering, advantages of ToD tariff, effect of ToD on load factor and energy bill are discussed.

The rate of electricity will vary according to the time of the day, it is not charged at the same rate at all time of the day.
As per time of day tariff, tariff rate shall be 10-20% less than the normal tariff during solar hours (duration of 8 hours in a day specified by the State Electricity Regulatory Commission) whiles the tariff during peak hours will be 10-20% higher.
The TOD tariff will be applicable from industrial and commercial consumers having maximum demand of 10kW and above from 1^st April, 2024 excluding agricultural consumers, from 1^st April, 2025.
The time of delay tariff shall be applicable after the installation of smart meters.

TOD Tariff

The TOD tariff comprise separate tariff for solar hours, peak hours and normal hours, send price signal to consumers to manage their loads accroding to tariff.
The effective utilization of ToD tariff, consumers can reduce their electricity bills.
As the solar power is cheaper, the tariff during the solar hours will be less so the consumers will be beneficial.
The thermal, hydro as well as gas based power capacity is used during non solar hours – it will reflected in the time of day tariff.
The ToD mechanism will ensure better grid integration of renewable energy sources by facilitating faster energy transition for India.
Most of the State Electricity Regulatory Commissions (SERCs) have already implemented ToD tariffs, for large Commercial and Industrial (C&I) category of consumers in the country.

Smart meter

Government has simplified rules for smart metering.
The existing penalties for increase in consumer’s demand beyond the maximum sanctioned load / demand have been reduced in order to avoid inconvenience / harassment of the consumers.
After installation of smart meter, no penal charges will be imposed on a consumer based on maximum demand recorded by the smart meter for the period before installation date.
Load revision procedure has also been rationalized in a way that maximum demand shall be revised upwards only if sanctioned load has been exceeded at least three times in a financial year.
The smart meter shall be read remotely at least once in a day and data shall be shared with consumers in order to take informed decision about consumption of electricity.

Advantages of ToD Tariff

Improves system load factor; The time of day tariff means of incentive consumers to shift a portion of their load from peak times to off peak times therefore improving load factor by reducing the demand during peak load.
The effective utilization of ToD tariff can reduce electricity bills. As the solar power is cheaper, the tariff during the solar hours will be less so the consumers will be beneficial.
Better grid integration of renewable enegy by facilitating faster energy transition in India
Existing penalties for increase in consumer’s demand beyond the maximum sanctioned load / demand have been reduced. After installation of smart meter, no penal charges will be imposed on a consumer based on maximum demand recorded