As the government introduces a new electricity price scheme, Uttar Pradesh’s electricity users may expect a significant shift in their power bills. This mechanism, called the Time of Day (TOD) tariff, will implement different power pricing for use during the day and at night. Household power rates may increase by 10 to 20 percent as a result.
Starting on April 1, 2025, this policy, which is now in effect for large and small industries, will be expanded to include all customers. Many organisations and customers are against the scheme, claiming it is onerous and unjust, despite the government’s assurances that it would assist in controlling electricity consumption effectively.
Let’s examine the newly implemented electricity billing system’s operation and implications for you in more detail.
What Is the “Time of Day” Tariff System?
Under the Time of Day (TOD) tariff, the cost of electricity is determined by the time of day it is used. By this regulation:
- Electricity prices will be higher during the day, usually during periods of heavy demand.
- Electricity tariffs will be reduced at night when there is less demand for electricity.
This approach encourages users to use their appliances more frequently during off-peak hours by lowering the demand for power during peak hours.
How Will It Affect Your Electricity Bill?
When this law goes into force on April 1, 2025, residential power rates might increase by 10% to 20%. Monthly costs will go up for those who use more power during the day, when rates will be higher. Lower charges, however, can be advantageous for individuals who can move their consumption to the evening.
Although the TOD method has long been used by enterprises and industries, its application to ordinary families is a recent development that has generated debate.
Consumer Reactions: Opposition and Legal Action
This new policy has many customers feeling anxious and dissatisfied. Awadhesh Kumar Verma, president of the Consumer Council, has vehemently criticised the regulation, calling it unjust to regular people. He has promised to challenge its execution in court.
However, the Energy Department asserts that the TOD system will help customers by allowing them to manage their electrical expenses. According to officials, homes may save money by using less electricity during peak hours and moving power-intensive tasks, such as using air conditioners, water heaters, and washing machines, to the cheaper evening tariff period.
Why Is the Government Implementing This System?
The Time of Day tariff is a method used in many nations to better control the demand for power; it is not exclusive to Uttar Pradesh. The following are the primary justifications for its implementation:
- Encouraging customers to move their consumption to times when demand is lower to reduce power shortages during peak hours.
- Distributing power use more equally throughout the day reduces the chance of blackouts.
- Encouraging individuals to use power responsibly to promote energy efficiency.
Many people think this scheme would primarily raise household expenditures, despite the government’s insistence that it will help customers as well as the electrical infrastructure.
How Can Customers Help?
Customers can take the following actions to wisely control their power use if this rule is put into effect:
- Use heavy appliances at night when power costs are cheaper.
- To avoid paying more, use fewer non-essential equipment during peak hours.
- Invest in appliances that use less electricity and are energy-efficient.
- To reduce the cost of power throughout the day, think about using solar energy.
There are benefits and drawbacks to the Time of Day (TOD) pricing structure. Although it seeks to balance the power demand and encourage energy conservation, it also adds to the financial burden on customers, particularly those who are forced to use electricity during peak hours.
Consumer advocacy groups are getting ready to file a lawsuit while the government maintains its stance on the ruling. It remains to be seen if this method will genuinely benefit customers or merely raise power prices.
In order to prevent high costs, people of Uttar Pradesh should get ready for the new billing system and find strategies to maximise their power use.
