Shillong, June 23: The Indian government has announced new electricity rules that will bring about changes in power tariffs, allowing for reductions of up to 20% during the day and increases of up to 20% during peak night hours.
These measures aim to reduce strain on the power grid during peak times and contribute to India’s target of achieving 65% of its energy capacity from non-fossil fuel sources by 2030. The revised tariffs will be implemented from April 2024 for commercial and industrial consumers, and a year later for most other consumers, excluding the agricultural sector.
According to Power Minister R. K. Singh, the time-of-day tariffs will reflect the cost difference between solar power, which is cheaper, and other sources such as thermal, hydropower, and gas-based capacity. Singh stated that the tariffs during solar hours would be lower, providing benefits to consumers. On the other hand, during non-solar hours, when higher-cost energy sources are used, the tariffs will reflect the increased costs.
The implementation of these new tariffs is expected to be advantageous for consumers who can shift their energy usage to daytime hours. For instance, households that run appliances like washing machines and dishwashers during the day may save on their electricity bills. However, consumers who have higher energy usage at night, such as those reliant on air conditioners, may see an increase in their bills.
Overall, the introduction of time-of-day tariffs is a significant step towards improving the efficiency and sustainability of India’s electricity grid. It also serves as an incentive for consumers to reduce energy consumption during peak hours, thereby easing the demand on the power grid. These new rules are being implemented as India faced its worst electricity shortage in FY23, driven by increasing temperatures and a surge in economic activity.