MSMEs can benefit from ToD tariffs by shifting consumption during solar hours when power cost will be at least 20% less

Ministry of Power vide notification dated 14.06.2023 has issued the Electricity (Rights of Consumers) Amendment Rules, 2023 wherein the rule for Time of Day (ToD) Tariff has also been specified. This rule inter alia provides that:

i. ย ย ย ย ย ย ย ย  ToD tariff for Commercial and Industrial consumers having maximum demand more than 10kW shall be made effective from a date not later than 1st April, 2024 and for other consumers except agricultural consumers, the ToD tariff shall be made effective not later than 1st April, 2025.

ii.ย  ย ย ย ย ย ย  ToD tariff, during the peak period of the day, for Commercial and Industrial consumers shall not be less than 1.20 times the normal tariff and for other consumers it shall not be less than 1.10 times the normal tariff.

iii. ย ย ย ย ย ย  Tariff for solar hours, of the day, to be specified by the State Commission shall be at least twenty percent (20%) less than the normal tariff for that category of consumers.

Ministry of Power has not received any representations from MSME entrepreneurs. Further, the ToD tariff comprising separate tariffs for peak hours, solar hours and normal hours, sends price signals to consumers to manage their load in accordance with the Tariff. Since, the tariff during the solar hours will be at least 20% less than the normal tariff, the consumer including MSMEs can shift consumption during solar hours when power cost is less and can be benefited.

Ministry of Micro, Small and Medium Enterprises has not requested Ministry of Power to reconsider its decision.

This information was given by The Union Minister of New Renewable Energy & Power Sh. R. K. Singh in Lokย  Sabha in a written reply today.

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