The Uttarakhand Electricity Regulatory Commission (UERC) has proposed a new Time of Day (TOD) tariff system under which industries and commercial consumers will get cheaper electricity during daytime and higher rates during peak hours. The commission has released a draft concept paper and invited suggestions from stakeholders till January 31.
The move aims to promote solar energy and manage electricity demand more efficiently. Under the Electricity (Rights of Consumers) Amendment Rules, 2023, eight hours of the day will be designated as solar hours. During this period, electricity tariffs will be at least 20 percent lower than normal rates. In contrast, during peak hours, power tariffs for industrial and commercial users may be increased by 20 percent or more.
UERC stated that electricity rates in Uttarakhand have so far not clearly differentiated between solar and non-solar hours under the TOD system. With the increasing installation of smart meters and rooftop solar systems, electricity consumption patterns are changing, making a time-based tariff structure necessary.
UPCL began installing smart meters in August 2024. As per the rollout plan, smart meters for high-tension consumers are to be installed by July 2025, while low-tension consumers are expected to be covered by June 2026. The commission clarified that the final TOD tariff will be based on actual consumption data collected through these smart meters.
The concept paper also studies TOD tariff models implemented in states such as Maharashtra, Gujarat, Rajasthan and Madhya Pradesh, where lower tariffs are offered during solar hours and higher charges apply during peak demand periods. UERC has sought suggestions on defining solar hours, modifying peak and off-peak timings, tariff structure and alignment with central government rules.
A separate critical perspective
While the proposal highlights benefits like solar promotion and demand balancing, industry representatives may face higher operational costs during peak hours. Without adequate flexibility or support for shifting consumption patterns, smaller industries and commercial units could struggle to adapt, raising concerns about the practical impact of higher peak-time tariffs.
