June 25, 2023
The central government has amended the rules for electricity consumers to charge different electricity charges according to time.
This means that the tariff should be increased by 10 to 20 percent during peak demand hours and the tariff can be reduced by 10 to 20 percent for electricity used during sunshine hours. This new tariff procedure will come into force from April 1, 2024 for commercial and industrial use.
From April 2024, time-of-day charges will be applicable to commercial and industrial consumers with peak demand of 10 kilowatts and above, and to all consumers except agricultural consumers from April 1, 2025. DOT Time of Day means that rather than charging electricity at the same rate at all times of the day, the price paid for electricity varies with the time of day.
Under this tariff system, the tariff charged during off-peak hours of solar power will be 10%-20% lower than the current normal tariff charged throughout the day. This DOT time depends on the time specified by the State Electricity Regulatory Commission which is 8 hours in a day. At the same time, the charge is 10 to 20 percent higher during peak hours of other electricity usage. From 1 April 2024, DOT tariff will be applicable for commercial and industrial consumers with peak demand of 10 kW and above.
Tamil Nadu Electricity Department Description:-
The Tamil Nadu Electricity Board has said that the practice of charging electricity charges based on time is not applicable to households. The Union Government has decided to charge 20% extra to electricity consumers during the morning and evening peak hours.
Initially, this electricity tariff system will be implemented for industries and commercial establishments from April 2024. Accordingly, the Tamil Nadu Regulatory Authority has the power to fix electricity tariffs in Tamil Nadu, stating that the practice of charging time-based electricity charges is not applicable to households and therefore domestic consumers will not be affected. Hence no peak time period charges are fixed for domestic consumers as per the existing Electricity Tariff Ordinance. Therefore, the Tamil Nadu Power Generation and Distribution Corporation has explained that domestic consumers in Tamil Nadu will not be affected by this amendment.