New Electricity Rules: Daytime power tariffs to drop by 20pc, peak night hours to see increase

New Delhi, June 23: The Ministry of Power announced on Friday that new electricity rules will facilitate a reduction in power tariffs by up to 20 per cent during the day, while tariffs during peak night hours may see an increase of up to 20 per cent.

This strategic measure aims to promote the utilisation of renewable energy sources and contribute to the government's ambitious targets for sustainable energy generation.

By implementing this system, it is anticipated that the demand on the power grid will be alleviated during peak hours when households typically intensify their usage of air conditioning systems after work. The new rules will be enforced starting from April 2024 for commercial and industrial consumers, and one year later for most other consumers, excluding those in the agricultural sector.

Power Minister RK Singh highlighted the cost-effectiveness of solar power, explaining that the tariff during solar hours will be lower, leading to direct benefits for consumers. Conversely, during non-solar hours, thermal, hydro, and gas-based power generation capacities are utilized, and their costs are relatively higher compared to solar power. This disparity will be reflected in the time-of-day tariff structure.

The introduction of these rules is expected to make significant strides towards achieving the government's target of generating 65 per cent of the country's energy capacity from non-fossil fuel sources by 2030. Furthermore, it aligns with the long-term goal of achieving net-zero emissions by 2070, emphasising India's commitment to sustainable and eco-friendly energy practices.

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- With inputs from agencies

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