UPPCL's Proposed TOD Tariff Likely To Raise Electricity Costs For Over 70% Of Domestic Consumers; Here's All You Need To Know

The Uttar Pradesh Power Corporation Limited (UPPCL) proposed a new traffic regulation, introducing a Time of Day (TOD) tariff system, which could significantly alter electricity rates for domestic consumers. Under the plan, electricity will be cheaper during off-peak hours and more expensive during peak demand periods, with rates varying seasonally. Consumers will need smart meters to adopt this system.

During summer (April to September), electricity would be cheaper in the mornings and more expensive from late evening to night. Conversely, in winter (October to March), rates would be higher from evening to midnight and lower during the early morning hours. These adjustments could lead to price fluctuations of 10-20 per cent compared to current rates.

The TOD system is already applied to industrial consumers, where summer electricity rates are 15 per cent cheaper from 5 am to 10 am and 15 per cent higher from 7 pm to 3 am. In winter, rates are 15 per cent higher between 5 pm and 11 pm and 15 per cent lower from 11 pm to 5 am The new regulation proposes extending this model to all consumer categories except 1.5 million agricultural connections.

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Government directives require TOD implementation under the Electricity Act by April 1, 2025. However, analysts predict the change will increase electricity expenses for up to 70 per cent of the state’s 2.85 crore domestic consumers, with costs rising by up to 20 per cent.

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Seasonal variations in electricity consumption patterns may exacerbate costs for domestic users. For example, during peak demand hours, when electricity is more expensive, households are likely to consume more energy. Conversely, off-peak hours, when rates are lower, typically coincide with reduced household consumption. This mismatch suggests the TOD system could disproportionately burden residential consumers despite its potential to promote energy efficiency.