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Govt plans off-peak tariff system to do commercial users power of good

Rajesh Kumar

In a bid to encourage power consumers, particularly commercial ones, to shift the consumption cycle, the Delhi Government has planned to incentivise electricity use in off-peak hours between 10.30 pm and 6.30 am. Power department has asked the Delhi Electricity Regulatory Authority (DERC) and three discoms to introduce a new system of differential tariff rates for peak (6.30 pm to 10.30 pm) and off-peak hours.

If Time of Day (ToD) metering system is implemented, Delhi will be the first State in the country to have such a metering system, which, experts say, will benefit everybody including the consumers. Under the ToD system, power tariff for peak hours (6.30 pm to 10.30 pm) is likely to be fixed at as high as Rs 6.40 per unit, while for off-peak hours (10.30 pm to 6.30 am) the rate per unit will be Rs 2.60.

"The proposed system is being introduced to discourage commercial users from consuming more power during peak hours so that load-shedding could be minimised in residential areas," said Principal Secretary (Power) Rajni Kant Verma.

The Government has directed discoms to use ToD meter technology in a phased manner, wherein the meter is directly connected to the server with automatic reading. It is expected to have a substantial impact on demand side management as consumers will be monitoring their own pattern of consumption on a real time basis thereby facilitating effective impact of ToD metering. The order issued on August 30 by the power department to discoms said the DERC may consider introducing a peak and off-peak tariff ratio of at least 2:1 for effective ToD metering.

The power distribution companies often have to procure additional power from the market at very high cost to meet the demand during the peak hours. The power consumption touched 5,600 megawatt in Delhi during this summer breaking all previous records.