Empowering MSMEs: Union Power Minister highlights 20% Savings with ToD Tariffs during Solar Hours

The Ministry of Power has recently issued the Electricity (Rights of Consumers) Amendment Rules, 2023, with a specific provision for Time of Day (ToD) Tariff. Under this amendment, ToD tariff will be applicable to Commercial and Industrial consumers with a maximum demand exceeding 10kW from a date no later than April 1, 2024. For all other consumers, excluding agricultural consumers, the ToD tariff will be enforced by April 1, 2025.

The ToD tariff during peak hours for Commercial and Industrial consumers will be set at a minimum of 1.20 times the normal tariff, while for other consumers, it will be at least 1.10 times the normal tariff.

Additionally, the State Commission will specify a tariff for solar hours, which will be a minimum of 20% lower than the normal tariff for consumers falling under that category.

The Ministry of Power states that they have not received any objections or representations from MSME entrepreneurs regarding this decision. The ToD tariff, which includes separate tariffs for peak, solar, and normal hours, aims to send price signals to consumers, encouraging them to manage their power consumption according to the tariff structure. Consumers, including MSMEs, can take advantage of the lower tariff during solar hours to shift their consumption during these periods and benefit from reduced power costs.

It is important to note that the Ministry of Micro, Small and Medium Enterprises has not requested the Ministry of Power to reconsider this decision, indicating that there are no major objections from this sector.

In summary, the Ministry of Power’s recent amendment introduces ToD tariffs, making them applicable to different consumer categories from specified dates. This move is aimed at incentivizing load management and encouraging consumers, including MSMEs, to shift their power consumption to solar hours when electricity costs are lower.