{"id":36161,"date":"2023-07-02T04:24:45","date_gmt":"2023-07-01T22:54:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=36161"},"modified":"2025-04-21T15:48:31","modified_gmt":"2025-04-21T10:18:31","slug":"time-of-day-tod-tariff-amendments-to-the-electricity-rights-of-consumers-rules-2020","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/time-of-day-tod-tariff-amendments-to-the-electricity-rights-of-consumers-rules-2020\/","title":{"rendered":"Time-of-day (ToD) tariff: Amendments to the Electricity (Rights of Consumers) Rules 2020"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>The Electricity (Rights of Consumers) Rules 2020<\/strong><\/li>\n<li><strong>About the Time-of-day Tariff Norms<\/strong><\/li>\n<li><strong>Potential Benefits of ToD Power Tariffs<\/strong><\/li>\n<li><strong>How do DSM tools help in Integrating RE Generation?<\/strong><\/li>\n<li><strong>Challenges towards Implementing ToD tariff Structure<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>The Union Power Ministry announced amendments to <strong>the Electricity (Rights of Consumers) Rules 2020<\/strong>, and the changes included the introduction of time-of-day (ToD) tariff provisions.<\/li>\n<li>As per the notification, ToD tariffs in India will be <strong>static <\/strong>(not dynamic &#8211; determined on a real-time basis in accordance with the actual demand conditions), which means they will be decided in advance for different blocks of the day.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>The Electricity (Rights of Consumers) Rules 2020:<\/strong><\/h2>\n<ul>\n<li>The Ministry of Power has promulgated the Electricity (Rights of Consumers) Rules 2020 under the Electricity Act 2003.<\/li>\n<li>These rules empower the consumers of electricity as the consumers have rights to get reliable services and quality electricity.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>About the Time-of-day Tariff Norms:<\/strong><\/h2>\n<ul>\n<li>The TOD tariffs are separate tariffs for peak hours, solar hours and normal hours.<\/li>\n<li><strong>The power tariff during \u201csolar hours\u201d<\/strong> &#8211; the duration of 8 hours a day as specified by the respective State Electricity Regulatory Commission (SERC) &#8211; of the day shall be <strong>at least 20% lower than the normal tariff<\/strong>.<\/li>\n<li><strong>Tariffs during peak hours<\/strong> will be at least <strong>20% higher than the normal tariff for commercial and industrial consumers<\/strong>, and at least <strong>10% higher for other consumers.<\/strong><\/li>\n<li>It would be applicable for Commercial and Industrial consumers <strong>having Maximum demand of 10 KW and above<\/strong> (from 1st April 2024), and for all other consumers (except agricultural consumers) from 1st April 2025.<\/li>\n<li><strong>Smart metres are a prerequisite for ToD tariff systems <\/strong>and most SERCs have already implemented ToD tariffs for large commercial and industrial categories of consumers.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Potential Benefits of ToD Power Tariffs:<\/strong><\/h2>\n<ul>\n<li><strong>A \u201cwin-win\u201d proposition<\/strong> for consumers as well as the country\u2019s power system.<\/li>\n<li><strong>For consumers:<\/strong>\n<ul>\n<li><strong>Separate tariffs<\/strong> will send <strong>price signals to consumers<\/strong> to manage their load according to the tariff &#8211; <strong>offer a nudge to consumers to optimise<\/strong> their electricity consumption, especially during peak hours<\/li>\n<li><strong>With awareness and effective utilisation<\/strong> of the ToD tariff mechanism, <strong>consumers can reduce their electricity bills<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>For the power system:<\/strong>\n<ul>\n<li>If the load on the grid during peak consumption hours goes down, <strong>the requirement for additional investments in grid infrastructure<\/strong> for maintenance and upgradation also declines over the medium to long term.<\/li>\n<li>This is also <strong>a major demand side management<\/strong> (DSM) tool that is expected to result in better grid integration of the increasing share of renewable power in India, e<strong>xpediting its energy transition<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure class=\"media\">\n<div data-oembed-url=\"https:\/\/www.youtube.com\/watch?v=zxf7vsovM60\">\n<div><iframe src=\"https:\/\/www.youtube.com\/embed\/zxf7vsovM60\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/figure>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>How do DSM tools help in Integrating RE Generation?<\/strong><\/h2>\n<ul>\n<li>The country\u2019s current installed generation capacity is around <strong>410 GW <\/strong>(1 gigawatt is 1,000 megawatts) while the <strong>maximum demand is around 229 GW<\/strong>.<\/li>\n<li>Of the installed capacity, the total electric power installed capacity from<strong> non-fossil fuel-based energy resources was 179 GW, which is over 40%<\/strong> of the total electric power installed capacity, primarily solar and wind.<\/li>\n<li><strong>Energy storage<\/strong> is needed alongside green energy sources to primarily balance out the variability in a renewable generation &#8211; electricity is generated only when the sun shines or when the wind blows<\/li>\n<li><strong>To compensate for the intermittency<\/strong>, there are <strong>two alternatives being considered by the government now<\/strong>: hydrogen and hybrid generation models blended with off-stream pumped storage.<\/li>\n<li>In essence, DSM tools aid grid managers and policy planners in managing these RE integration difficulties until these storage challenges are resolved.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Challenges towards Implementing ToD tariff Structure:<\/strong><\/h2>\n<ul>\n<li><strong>Around 20 countries<\/strong>, including at least 17 European nations and the United States, have time-based power tariff structures in one form or another.<\/li>\n<li>But the success of ToD tariffs, especially at the consumer level, is <strong>contingent on smart metering being implemented at the unit level.<\/strong><\/li>\n<li><strong>Users need to be made aware<\/strong> of how to optimise their consumption patterns to take advantage of the scheme.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is the National Green Hydrogen Mission of India?<\/strong><\/h3>\n<p>The mission was approved by the Union Cabinet on 4 January 2022, with the intended objectives of: Making India a leading producer and supplier of Green Hydrogen in the world, creation of export opportunities for Green Hydrogen and its derivatives, etc.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Q2) What is green hydrogen?<\/strong><\/h3>\n<p>Green hydrogen is hydrogen generated by renewable energy or from low-carbon power. Green hydrogen has significantly lower carbon emissions than grey hydrogen, which is primarily produced by steam reforming of natural gas. It accounts for less than 0.04% of total hydrogen production globally.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/differential-time-of-day-power-tariff-impact-8688235\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Move towards differential timeof-day power tariffs: How would it impact consumers?<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The TOD tariffs are separate tariffs for peak hours, solar hours and normal hours<\/p>\n","protected":false},"author":5,"featured_media":36162,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-36161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/36161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=36161"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/36161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/36162"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=36161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=36161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=36161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}