Govt Amends Electricity Rules 2020, Proposes Discounted Tariffs During Solar Hours

The Ministry of Power has now come up with a gazette notification, amending the Electricity (Rights of Consumers) Rules 2020. The new rules envisage amending Section 5 and Section 8 of the principal rule of 2020. 

The latest rules talk about changes in provisions related to using smart meters and pre-paid meters. It also talks about the Time of Day Tariff, which refers to the differentiated tariffs for peak and non-peak hours in a day. The new rules also offer discounted tariffs on electricity used during solar hours in the day. The ministry defines solar hours as eight hours a day, as specified by the state commissions. 

The new rules proposed amending Section 8 of the principal rule. It proposes adding provisions for deadlines for the Time of Day Tariff (ToD Tariff). It said that for the Commercial and Industrial (C&I) consumers having a maximum demand of more than 10 Kw, the ToD tariff should commence not later than April 1, 2024. It also said that for other consumers except agricultural consumers, the tariff should be made effective by April 1, 2025. 

It said that these should be done immediately after installing smart meters. It also said that for consumers with smart meters, ToD specified by the state commissions for C&I consumers during peak periods of the day should not be less than 1.20 times the normal tariff. For other consumers, it should not be less than 1.10 times the normal tariff. 

The new rules, however, made special provisions for power during solar hours. It said that the tariff for solar hours of the day, specified by the state commission, should be at least 20 percent less than the normal tariff for the category of consumers. It also clarified that the peak hour duration should not be more than solar hours as notified by the state commissions of the state load despatch centres. 

The new rules also proposed amending Section 5 of the principal rule of 2020. The new rules added two new provisions under this. It said that after the installation of smart meters, no penalty should be imposed on the consumers, based on the maximum demand recorded by the smart meter, for the period before the installation date.

It also made a special provision related to the increase in load. “In case the maximum demand recorded by the smart meter exceeds the Sanctioned Load in a month, the bill for that billing cycle shall be calculated based on the actual recorded maximum demand, and consumers shall be informed of this change in calculation through Short Message Service or mobile application,” it added. 

It is evident from the new revision of the rules that the government is now pushing to prepare for a high solar share in the grid, among other things. Lower tariffs during solar hours will likely drive up demand during that time.