MSMEs Can Benefit From ToD Tariffs By Shifting Consumption In Solar Hours: RK Singh

India's micro, small and medium enterprises (MSMEs) can benefit from the time of day (ToD) tariffs by shifting consumption during solar hours when power costs will be at least 20 per cent less, said the Union Power Minister RK Singh on Thursday.

"Since the tariff during the solar hours will be at least 20 per cent less than the normal tariff, the consumer including MSMEs can shift consumption during solar hours when power cost is less and can be benefited," he added.

Ministry of Power in a notification dated 14 June 2023 has issued the Electricity (Rights of Consumers) Amendment Rules, 2023 wherein the rule for ToD tariff has also been specified. 

As per the rule, the ToD tariff for commercial and industrial consumers having maximum demand of over 10kW will be made effective from a date not later than 1st April 2024 and for other consumers except agricultural consumers, the ToD tariff shall be made effective not later than 1 April 2025.

Notably, the ToD tariff, during the peak period of the day for commercial and industrial consumers would not be less than 1.20 times the normal tariff and for other consumers it shall not be less than 1.10 times the normal tariff.

In a written reply in the Lok Sabha, he said that the Ministry of Power has not received any representations from MSME entrepreneurs. "Further, the ToD tariff comprising separate tariffs for peak hours, solar hours and normal hours, sends price signals to consumers to manage their load in accordance with the tariff," Singh mentioned. 

He stated that the MSME Ministry has not requested the Ministry of Power to reconsider its decision.