The Bihar Electricity Regulatory Commission (BERC) has approved the 'Time of Day' (ToD) tariff system, marking a significant shift in the state's power billing structure. Effective from April 1, this new mechanism will adjust electricity rates based on the time of consumption. According to official reports, the decision follows proposals from state power distribution companies aimed at managing peak demand more efficiently. 7 million will be immediately covered under this new tariff regime.
Breakdown of Time Slots and Tariff Rates
The ToD tariff structure divides the 24-hour cycle into three distinct periods. The off-peak period, scheduled from 9 AM to 5 PM, offers electricity at a discounted rate. During these hours, consumers will only be required to pay 80% of the standard tariff. For instance, if the electricity consumption amounts to ₹100, the effective bill will be ₹80. Conversely, the peak period from 5 PM to 11 PM will see higher rates. The remaining period, from 11 PM to 9 AM, will follow the standard billing rates without any additional surcharges or discounts.
Impact on Domestic vs Commercial Consumers
The regulatory commission has introduced a tiered surcharge system for the peak hours. Domestic consumers will face a 110% charge during the 5 PM to 11 PM window, meaning a consumption of ₹100 will cost ₹110. For commercial and industrial categories, including both small and large-scale units, the peak hour surcharge is set at 120%. This differentiation is designed to encourage high-load industrial activities to shift their operations to daytime hours when solar power availability is higher and procurement costs for utilities are lower.
Criteria for Smart Meters and High-Load Connections
The implementation of the ToD tariff is technically linked to the deployment of smart prepaid meters. 7 million consumers in Bihar use smart meters, which are capable of recording real-time consumption data necessary for time-based billing. Also, consumers who still use traditional meters but have a sanctioned load exceeding 10kW will also be brought under the ToD framework. Officials stated that the integration of smart technology is essential for the transparency and accuracy of this variable pricing model.
Regulatory Approval and Utility Proposals
The North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) submitted the ToD proposal to BERC as part of their annual tariff filing. The utilities argued that the cost of power procurement fluctuates Notably throughout the day, with peak evening hours being the most expensive. By implementing ToD, the commission aims to align consumer behavior with the actual cost of power. According to BERC officials, this move is expected to stabilize the state grid and reduce the financial burden on distribution companies during high-demand periods.
Current Consumer Landscape in Bihar
21 crore. The state government has been aggressively promoting the installation of smart prepaid meters to reduce transmission and distribution losses. The introduction of ToD is a strategic step in the state's broader power sector reforms. While the rule specifically targets smart meter users and high-load connections for now, it sets a precedent for future billing practices across all consumer segments as the smart meter rollout nears completion across the state.