J&K Introduces Time-of-Day Power Billing: Who Will Pay More and Who Can Save?
Srinagar, Sep 1, KNT: Jammu and Kashmir has introduced a Time-of-Day (ToD) electricity billing system from September 1, changing the way eligible consumers are charged by linking the cost of electricity to the time at which it is consumed.
The system has been introduced under the new tariff order issued by the Joint Electricity Regulatory Commission for Jammu and Kashmir and Ladakh (JERC-JKL). It applies to non-agricultural consumers having a sanctioned load or contract demand of more than 10 kW, wherever compatible metering and billing infrastructure is available.
What is ToD billing?
Under the existing system, the energy charge generally does not change simply because electricity is consumed at 7 am, 2 pm or 8 pm.
ToD billing changes that approach.
The day is divided into different consumption periods:
- 6 am to 9 am: Peak hours
- 9 am to 5 pm: Solar hours
- 5 pm to 10 pm: Peak hours
- 10 pm to 6 am: Normal hours
During the solar-hours window of 9 am to 5 pm, eligible consumers receive a 20 per cent rebate on energy charges.
During peak hours, the additional charge depends on the consumer category. Industrial and commercial consumers face a 20 per cent surcharge, while other eligible categories face a 10 per cent surcharge. Normal hours carry the applicable standard energy charge without the ToD surcharge or rebate.
How can it affect consumers?
The impact will be different for different users.
A consumer with a sanctioned load below or equal to 10 kW will generally not fall under the new ToD mechanism. For such consumers, the principal change from September 1 is the revised electricity tariff.
But for an establishment with a sanctioned load above 10 kW, when electricity is consumed can now affect the bill.
A shop, hotel, restaurant, office, workshop, school, hostel or other establishment with a qualifying load that uses heavy electrical equipment during the evening peak period could face higher energy charges.
For example, if an eligible commercial consumer uses electricity during peak hours, the energy component attracts a 20 per cent ToD surcharge. If the same flexible consumption can be shifted to 9 am–5 pm, the consumer can instead benefit from the 20 per cent daytime rebate.
This means businesses that depend heavily on water heaters, refrigeration, machinery, pumps or other flexible electrical loads may have an incentive to shift some of their consumption into daytime hours.
Why has JERC introduced it?
The idea is not simply to collect more money.
ToD billing is designed to change consumption patterns by encouraging consumers to use more electricity during periods when the power system has greater availability, particularly during daytime solar hours, and reduce demand during peak periods.
In practical terms, the regulator wants consumers to avoid creating a simultaneous surge in demand in the morning and evening.
The system could therefore benefit consumers who are able to reorganize their electricity use. But establishments whose operations require continuous or peak-hour consumption may have less flexibility and could face a higher bill.
Smart meters become important
The effectiveness of ToD billing depends on the ability of the metering and billing system to accurately identify when electricity was consumed.
The JERC order therefore links implementation to the availability of compatible metering and billing infrastructure. Smart meters are particularly suited to this system because consumption can be recorded according to different time periods.
This also means that the rollout of ToD billing is likely to increase the importance of smart-metering and accurate consumption data across J&K.
A new challenge for businesses
For commercial and industrial consumers, the change could require a rethink of daily operations.
Running high-consumption equipment during peak hours could become more expensive, while shifting suitable operations into the 9 am–5 pm solar window could reduce the energy component of the bill.
For example, a hotel could examine whether water heating and other flexible loads can be shifted toward daytime hours rather than concentrated during the evening peak.
However, factories operating continuous processes may have far less ability to change their consumption pattern.
The bigger issue
ToD billing therefore creates both a potential saving and a potential additional burden.
Consumers who can shift their electricity use may benefit from the daytime rebate. Those who cannot avoid peak-hour consumption may pay more.
For ordinary households with sanctioned loads of 10 kW or less, the immediate concern remains the revised tariff rather than ToD billing. For larger consumers, however, the timing of electricity use will become an important part of managing monthly power costs. [KNT]
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