Rajasthan: New Formula for Electricity Savings; Advance Alerts for Cheap and Expensive Electricity to Reduce Bills

Reduce Electricity Bill Tips: Now your electricity bill will not be determined solely on the basis of consumption (units), but also on the time of day you use electricity.

Reduce Electricity Bill Tips: Your electricity bill will now not only be based on consumption (units) but also on the time you use electricity. The State Electricity Regulatory Commission has introduced the Time of Use (ToU) tariff concept for the first time, under which electricity rates will be determined by time of day.

In this new system, consumers will receive advance information on their mobile phones about when electricity will be cheaper and when it will be more expensive. For this, an alert will also be sent to the mobile phone about 1 to 1.5 hours in advance. This will allow people to shift their domestic and commercial work to times when electricity supply is cheaper. Currently, this is a concept on which electricity companies have to do homework.

Reason for Introducing the Concept

The State Electricity Regulatory Commission believes that with this system, people will do their daily chores at times when electricity is cheaper. This will not only reduce the bill but also lessen the pressure on the electricity system during peak hours. The use of solar energy will increase, and dependence on traditional power generation will decrease. Initially, this can be implemented for consumers with smart meters.

Understand It This Way…

6 am to 10 am and 6 pm to 10 pm – peak hours – higher rates

10 am to 4 pm – normal/solar hours – moderate or lower rates

After 10 pm – off-peak hours – cheapest electricity

(If a consumer charges an EV vehicle for three hours every day at 7 PM (peak time), they will have to pay a higher rate. However, if they charge the same at 11 PM (off-peak), there can be a saving of 10 to 20 per cent on the bill. Common people can shift their electricity consumption to cheaper times.)

Model in operation here…

- States like Delhi and Maharashtra have already implemented ToU or similar models.

- This system has been in operation in America and Europe for a long time.

Experts Say…

The ToU concept needs to be implemented experimentally with limited slots first to understand its results. Also, an effective analysis of existing ToD and other systems is necessary. This will help in understanding what improvements are needed. Plans need to be made according to different regions by understanding consumer habits. R. G. Gupta, Former Chairman and Managing Director, Rajasthan DISCOMs