GS Paper 3
Syllabus: Infrastructure (Energy)
Source: PIB
Context: The government has amended the Electricity (Rights of Consumers) Rules 2020 to empower power consumers, ensure a 24X7 reliable electricity supply at affordable cost, etc.
The Electricity (Rights of Consumers) Rules 2020:
- The Ministry of Power has promulgated the Rules under the Electricity Act, 2003.
- These rules shall empower the consumers of electricity as the consumers have the right to get reliable services and quality electricity.
Rights and obligations under the Rules:
- It is the duty of every distribution licensee to supply electricity on request made by an owner or occupier of any premises in line with the provisions of the Act.
- It is the right of consumers to have minimum standards of service for the supply of electricity from the distribution licensee.
The changes made in the Rules:
- Introduction of Time of Day (ToD) Tariff, and
- Rationalisation of smart metering provisions.
Introduction of Time of Day (ToD) Tariff:
- Rather than being charged for electricity at the same rate at all times of the day, there will be separate tariffs for peak hours, solar hours and normal hours.
- Tariffs during solar hours (8 hours in a day as specified by the State Electricity Regulatory Commission) shall be 10%-20% less than the normal tariff.
- Tariffs during peak hours will be 10 to 20% higher.
- It shall be made effective immediately after the installation of smart metres, for the consumers without smart metres.
Applicable for:
- Commercial and Industrial consumers have Maximum demand of 10 KW and above, from 1st April 2024 and
- For all other consumers except agricultural consumers, latest from 1st April 2025.
Significance:
- The ToD is a win-win for consumers as well as the power system.
- For consumers:
- The separate tariffs will send price signals to consumers to manage their load according to the Tariff.
- With awareness and effective utilisation of the ToD tariff mechanism, consumers can reduce their electricity bills.
- For the power system: The ToD mechanism will also ensure better grid integration of Renewable Energy sources thereby facilitating faster energy transition for India.
Current status of ToD mechanism:
- In India: Most of the State Electricity Regulatory Commissions (SERCs) have already implemented ToD tariffs for the large Commercial and Industrial category of consumers.
- Various statutory provisions already exist to enable and promote the implementation of ToD tariffs (i.e. Tariff Policy 2016, Electricity Act 2003 and National Electricity Policy 2005).
- Globally: It is recognised across electricity industries, as an important Demand Side Management (DSM) measure to reduce the demand during peak periods.
Amendment in smart metering provision:
- The government has simplified the rules for smart metering.
- To avoid inconvenience/harassment of the consumers, the existing penalties for an increase in consumer demand beyond the maximum sanctioned load/demand have been reduced.
- Post installation of a smart metre, no penal charges will be imposed on a consumer based on the maximum demand recorded by the smart metre for the period before the installation date.
Insta Links:
The Electricity (Rights of Consumers) Rules
Mains Links:
What are the problems being faced by the Power Sector? How can these problems be resolved with the help of the Draft National Electricity Policy 2021? Explain.
