Bihar: Discoms propose tweaking power tariff for industries

Under the differential power tariff scheme, industries would get incentives for power consumption during the day and will be charged more than the usual tariff for usage in the evening
Representational Image. (HT archive)
Representational Image. (HT archive)
Published on Feb 04, 2021 08:48 AM IST
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Bihar’s power distribution companies have proposed to alter the time-of-day tariff for industries as a part of the state’s differential power tariff scheme. Under this scheme, industries would get incentives for power consumption during the day and will be charged more than the usual tariff for consumption in the evening.

Industrial consumers are presently charged normal tariff during the day and the rates are lower at midnight.

Senior power officers in the state pointed out that consumption peaks in the evening and goes down during the day.

This is so, they say, because of increased power theft after dusk and fewer service consumers, including office establishments and industries, even as usage by domestic and agriculture consumers peaks in the evening. As a result, the demand for power begins to surge in the evening and remains high till early morning. The consumption graph then comes down and hits a trough during the day, said officials.

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Given this trend, the north and the south Bihar power distribution companies have surplus power during the day that they have to either trade or surrender, as it cannot be stored. It is to utilise this surplus power that the discoms have proposed lower power tariff for industries during the day.

The discoms have proposed to change the normal tariff slab, applicable between 5am and 5pm, to 11pm – 11am, to optimise the power demand curve of the state.

The existing off-peak hour slab from 11pm to 5am, when industrial consumers are charged 85% the normal tariff, will change to 11am -5pm. The existing peak hour slab from 5pm to 11pm, when industrial consumers are charged 120% the normal tariff, will remain unchanged, said officers.

The existing tariff for industrial consumers ranges between 6.40 and 6.55 per unit (kVAh).

“As part of time-of-day tariff, we propose to incentivise our industrial consumers by offering them lower than normal tariff for consuming power during the day, instead of late evening. It’s a win-win-situation for us as well as our industrial consumers, who do not have to pay additional wages to their employees for working at night,” said Sanjeev Hans, Bihar’s energy secretary and chairman-cum-managing director of the Bihar State Power Holding Company Limited.

Officials do not perceive any problem in getting the regulator’s nod to the proposal. The new tariff will then come into effect from April 1.

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Sunday, October 17, 2021