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Electricity in peak hours to get costlier

chandigarh Updated: Jun 02, 2014 12:28 IST
Vinod Kumar
Vinod Kumar
Hindustan Times

Get ready to shell out more for using electricity during peak hours with the joint electricity regulatory commission (JERC) approving the regulation for implementation of multi-year distribution tariff (MYT), which will come into force from next financial year.

As per orders issued on May 30, the Chandigarh electricity department will have to file business plan by September 30 for a control period of three financial years from April 1, 2015, to March 31, 2018, along with a fee of Rs 1 lakh.

At present, the revision of tariff is done annually. The commission has been stressing for introduction of multi-year system for the benefit of consumers and electricity department.

Under the new system, the time of day tariff would be structured across three time slabs to denote normal, peak and off-peak periods. The time-periods would vary according to different seasons of the year, that is, summer, winter and the monsoon season. The peak tariff would be 10%-20% higher than the normal tariff and the off-peak tariff would be priced 5-10% lower than the normal tariff.

The peak and off-peak hours during seasons will be notified in advance.

There are nearly 2.5 lakh consumers falling under different categories, of which 1.75 lakh fall in the domestic category.

When contacted, UT superintending engineer MP Singh said they would start working on implementing the concept of MYT.

"The new system will help the department in promoting efficiency and for consumers' point of view, improvement in efficiency leads to cost effective supply. The MYT principles are expected to result in reduction in tariffs in the long-term," he added.

The commission has also approved regulation for demand-side management (DSM), which is mandatory for enforcement of the MYT concept.

DSM aims at power shortage mitigation, seasonal peak reduction, cost effective energy savings, lowering the cost of electricity, reduction in emissions of greenhouse gases and any other objective, which may be stipulated by the commission from time-to-time.

It is also responsible for various activities such as load research and development of baseline data, formulation of DSM plan, design and development of DSM projects, including cost benefit analysis, plans for implementation, monitoring and reporting and for measurement and verification.

The electricity department will have to formulate and submit to the commission a perspective DSM plan covering entire period of the control period, within one year of notification of these regulations.