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Delhi to introduce Time of Day tariff system to limit peak hour consumption

According to reports, in a major reform initiative, Delhi’s power regulator, the Delhi Electricity Regulatory Commission (DERC), has decided to introduce a new system under which tariff will be charged according to electricity consumption in peak and off peak hours.

The proposed mechanism – aimed at encouraging consumers to limit their power consumption in peak hours – will be introduced on a pilot basis, officials in DERC said.

The system, known as Time of Day (TOD) metering, is also expected to discourage commercial users from consuming more power during peak hours and result in minimising load shedding in residential areas when the demand goes up substantially.

“An appropriate system of incentives to promote consumption of power in off peak hours and levying of surcharge to discourage peak hour consumption is expected to reduce power purchase cost,” the DERC had said while announcing a hike in tariff last month.

If implemented, Delhi will be the first state in the country to have such a metering system, which, experts said, would benefit everybody including consumers.

Power distribution companies (discoms) often have to procure additional power from the market at very high cost to meet the demand at the peak hours from 6 pm to 11 pm.

“The proposed system is being introduced to discourage commercial users from consuming more power during peak hours so that load shedding could be minimised in residential areas in the peak summer months when the demand goes up substantially,” the officials said.

The city has been witnessing long power cuts for the last couple of months due to the increasing demand and supply gap.

The power demand in the city registered an all-time high of 5,642 MW on July 6, breaking all previous records.

Resolving to implement the new system, DERC officials said the National Electricity Policy and National Tariff Policy mandates the State regulators to introduce the TOD in order to reduce the demand of electricity during peak hours.

Officials said initially that the DERC will introduce TOD for industrial consumers having a load of 300 Kilo Watt and above.

DERC wants to put in place an effective demand response mechanism through which consumers will be able to save money on power consumption while discoms will be able cut down power purchase cost as the price of power goes up during peak hours, they said.

To ensure supply of quality power, the DERC has proposed to appoint independent consultants to check the maintenance, upkeep and safety of infrastructure in all areas serviced by discoms.

“The Delhi Government will be requested to set up Consumer Advocacy Centre to provide legal help to consumers for pursuing their grievances,” a DERC official said.

One comment

  1. Time of the day (TOD) metering and tariff for industrial consumers was introduced in West Bengal in 1995 – almost 17 years ago. What is this about Delhi being the first State to do it?

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