Tariff based on consumption: DERC plans new system

The system,known as Time of Day (TOD) metering,is expected to also encourage commercial users to consume less power during peak hours. This is expected to help minimise load shedding in residential areas,during high demand.

“An appropriate system of incentives to promote consumption of power during off-peak hours and levying of surcharge to discourage peak hour consumption can reduce power purchase cost,” the DERC said,while announcing an increase in tariff last month.

If implemented,Delhi will be the first state to have such a metering system,which,experts said,would benefit everybody including the consumers.

The power distribution companies often have to procure additional power from the market at very high cost to meet the demand during the peak hours from 6 pm to 11 pm.

“The proposed system is being introduced to discourage commercial users from consuming more power during peak hours so that load shedding could be minimised in residential areas in the peak summer months when the demand goes up substantially,” an official said.

DERC officials said the National Electricity Policy and National Tariff Policy mandates the state regulators to introduce the TOD in order to reduce the demand of electricity at peak hours.

Officials said initially the DERC will introduce TOD for industrial consumers,who have a load of 300 kilowatt and above. Malls,hospitals,shopping complexes,industries and commercial complexes among others will be covered under the scheme.

DERC wants to put in place an effective demand response system,through which consumers can save money on power consumption and discoms are able cut power purchase cost.

To ensure supply of quality power,the DERC has proposed to appoint independent consultants to check the maintenance,upkeep and safety of infrastructure in all areas serviced by the power distribution companies.

“The Delhi government will be requested to set up Consumer Advocacy Centre for legal help to consumers for pursuing their grievances,” a DERC official said.