Power Minister suggests MSMEs to shift consumption to solar hours for 20% lower cost benefit

New Delhi, July 29 (KNN) Micro, Small and Medium Enterprises(MSMEs) should shift their power consumption to solar hours when power cost is at least 20% lower than the normal tariff to benefit from the Time of Day (ToD) tariffs, said Union Power Minister RK Singh.

Solar hours are referred to the eight-hour duration in a day as specified by the State Electricity Regulatory Commission.

“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,” the minister said in a written reply to a question in the Lok Sabha on Thursday.

The ToD tariff structure comprises different tariffs for power consumption during peak hours, solar hours and normal hours, providing price signals to consumers. 

Accordingly, consumers including MSMEs can manage their consumption by switching to solar hours when the costs are less.

The ministry in June this year had issued the Electricity (Rights of Consumers) Amendment Rules, 2023 wherein the rule for ToD Tariff was also specified. 

It noted that the ToD tariff, during the peak period of the day, for commercial and industrial entities will not be less than 1.20 times the normal tariff and for other consumers will not be less than 1.10 times the normal tariff.  

On the other hand, the tariff for solar hours of the day, as specified by the State Commission, will be at least 20 per cent less than the normal tariff for that category of consumers. 

ToD tariff for commercial and industrial entities with a maximum demand of more than 10kW will be effective from a date not later than April 1, 2024, and for other consumers except agricultural consumers, the ToD tariff will be effective not later than April 1, 2025, the minister noted.   (KNN Bureau)