Power cost set to vary by time as govt rolls out ToD tariff

Patna: Electricity consumers in Bihar with smart meters, except agricultural users, will pay higher tariffs during peak evening hours under the newly introduced Time of Day (ToD) tariff system with effect from April 1.

The change has been implemented by both state power distribution companies, North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited.

The revised tariff structure is expected to affect around 87 lakh consumers, mainly those using smart prepaid meters and consumers with connected load above 10 KW. Agricultural users, especially those using electricity for irrigation in rural areas, have been kept outside the scope of the new system, an official of the Bihar State Power Holding Company Limited (BSPHCL) said on Wednesday.

Under the ToD tariff, electricity rates will now vary depending on the time when power is consumed. Consumers using electricity during off-peak hours, from 9am to 5pm, will benefit from lower rates. During this period, they will pay only 80% of the normal energy charge, effectively making electricity 20% cheaper. Officials said this lower rate has been made possible because solar power generation is higher during the daytime, reducing the cost burden on distribution companies.

However, electricity consumed during peak hours, from 5pm to 11pm, will become more expensive. Domestic consumers will have to pay 110% of the normal energy charge during this period, while consumers in other categories will pay 120%. Officials said the increase reflects the higher demand for electricity in the evening, when distribution companies often have to buy power from the market at significantly higher rates.

For the remaining hours, from 11pm to 9am, the normal tariff will continue to apply.

Despite the introduction of the new billing system, the Bihar govt will continue to provide 125 units of free electricity to nearly 1.67 crore consumers in the state, according to BSPHCL officials.

The ToD tariff was approved by the Bihar Electricity Regulatory Commission for both distribution companies. Officials said the move was introduced largely in response to demands raised by consumer representatives, including the Bihar Industries Association.

According to officials, similar tariff systems have already been implemented in more than 22 states and union territories across the country.