Discom Assam Power Distribution Company Ltd. (APDCL) is set to reshape its tariff structure for Financial Year 2025-26 by introducing a Time-of-Day (ToD) tariff. As per the price mechanism, which has been filed before the Assam Electricity Regulatory Commission (AERC), the day will be divided into three time slots such as Night hours, Solar hours and Peak hours with different pricing rates. This marks a significant departure from the current model, which only differentiates Peak, and Off-Peak periods.
Table of Contents
Current Tariff Structure
Under the existing tariff structure, Peak hours are outlined from 5 pm to 10 pm, whereas Off-peak hours extends from 10 pm to 5 pm. This simple principle has been used to help smooth out the load on the power grid and encourage its use during less busy hours.
Proposed Tariff Structure
The proposed pricing duration for FY 2025-26 would be more granular:
Night hours: 12 midnight to 6 am
Solar hours: 6 am to 5 pm
Peak hours: 5 pm to 12 midnight
Importantly, the duration of Peak hours has been extended to two hours with the timing being 5 pm to 12 midnight instead of 5 pm to 10 pm, as was the case earlier. As such, the new schedule aims to improve alignment with true peak demand periods, which will incentivize better consumption of renewable-based energy sources.
Compliance with AERC Directive
The suggestion put forth by APDCL aligns with the guidelines established by the AERC in its tariff order from June 27, 2024. The Time of Day (ToD) tariff applies to all types of consumers who have a connected load that surpasses 10 kW and have smart meters installed. This approach guarantees that the adjustments in tariffs are carried out in a modern and equitable way.
Tariff Rates for Different Consumer Categories
APDCL has proposed the following tariff rates for various consumer categories:
| Category | Current Tariff | Proposed Tariff (Rs/unit) |
|---|---|---|
| Domestic-B Consumers (5 kW to 30 kW, Low Tension) | Rs 8.74 per unit | Night hours: Rs 8.94 Solar hours: Rs 6.99 Peak hours: Rs 9.62 |
| Commercial Consumers (0.5 kW to 30 kW) | Rs 9.19 per unit | Night hours: Rs 9.39 Solar hours: Rs 7.35 Peak hours: Rs 11.02 |
| Government Schools (up to 30 kW) | Rs 8.14 per unit | Night hours: Rs 8.34 Solar hours: Rs 6.51 Peak hours: Rs 8.95 |
| EV Charging Stations (Low Tension) | Rs 7.19 per unit | Night hours: Rs 9.75 Solar hours: Rs 7.64 Peak hours: Rs 10.50 |
Tariff Stability and Consumer Effects
APDCL is dedicated to keeping tariffs across all categories within a 20% margin of the Average Cost of Supply (ACoS) to avert any drastic tariff increases. The company’s plan also consists of freezing the existing tariff framework without any increases for all consumer segments for the financial year 2025-26, as sanctioned by the AERC in its ruling dated June 27, 2024. Nonetheless, the submitted petition includes a comprehensive table outlining the modifications to the tariff framework, aimed at promoting usage during off-peak hours and alleviating pressure on the grid during peak periods.
Government Assistance
In its petition, APDCL recognizes the state government’s provision of targeted subsidies or tariff support for specific categories. Lacking a formal assurance for ongoing assistance, the company has proposed a full-cost tariff for FY 2025-26. If the state government extend similar financial backing in the future, the proposed tariffs will be modified accordingly.
Expected Advantages
ToD tariff will serve to reduce consumption during peak-load hours, which will contribute to a more efficient and reliable power distribution system. This will likely pave the way for wider adoption of renewable energy, especially solar energy, by making electricity cheaper during the day when output is at its peak.
Conclusion
The rollout of the ToD tariff by APDCL marks a crucial advancement in modernizing Assam’s power distribution infrastructure. By aligning tariffs with actual consumption trends and the availability of renewable energy, this new framework seeks to optimize resource utilization, lessen peak demand, and provide a more stable and sustainable electricity supply for all users. The AERC will assess the proposal to confirm that it adheres to regulatory criteria and serves the interests of Assam’s consumers.
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