New rules: Power 20% cheaper during day, higher during night
New electricity rules will allow up to 20% cuts in power tariffs during the day and up to 20% increases during peak night hours, the Power Ministry said on Friday. The rules, aimed at encouraging the use of renewable energy, will come into effect from April 2024 for commercial and industrial consumers and a year later for other consumers, barring the agricultural sector.
Why does this story matter?
At the 2022 United Nations Climate Change Conference in Egypt, India declared a target of reducing its emissions by 45% of its Gross Domestic Product (GDP) by 2030. It also set a target of achieving 50% of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. India also hopes to achieve net zero greenhouse gas emissions by 2070.
Solar power is cheaper, thus tariff less during day: Minister
"Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits," Power Minister RK Singh said in a statement. He added that during the non-solar hours, conventional energy capacity is used, which is more expensive than solar power.
Amendments made to Electricity (Rights of Consumers) Rules, 2020
The power ministry said that the Government of India has introduced two changes to the Electricity (Rights of Consumers) Rules, 2020. The first is the introduction of the Time of Day (ToD) tariff, and the second is the rationalization of smart metering provisions. It hopes to achieve 65% of its energy capacity from renewable energy sources by 2030 and zero net emissions by 2070.
How will ToD help consumers
Under the ToD tariff, the price of electricity will vary according to the time of day. It is expected to help consumers avoid using electricity for washing clothes, cooking, and other energy-intensive purposes during peak hours when the power rate will be higher. However, customers who use more energy during night hours after work might see their bills go up.
