The Kerala State Electricity Board (KSEB) is seeking a change in the time slot marking peak electricity consumption in the evenings, a move which can have implications for consumers who are subject to differential pricing under time-of-day (ToD) tariffs.
The State power utility wants the present 'time zone' — 6 p.m. to 10 p.m. — changed to 5 p.m. to 11 p.m. so as to be in alignment with the energy exchanges on which it relies for power purchases to meet the peak-hour demand.
As part of its tariff proposals for the 2022-2027 period, the KSEB has sought sought the in-principle approval of the Kerala State Electricity Regulatory Commission to change the peak ToD time zone when smart meters are introduced in the State under the Centrally funded Revamped Distribution Sector Scheme (RDSS).
According to the KSEB, the present arrangement is causing financial loss to it as peak-hour prices are on the higher side in the energy exchanges.
“In exchanges, the day is segregated into four time zones and trading hours during peak hours is from 1700 hrs to 2300 hrs instead of the 1800 hrs to 2200 hrs now followed by the utility. Thus, the utility has to supply costly power procured from the exchanges to its consumers at an incentivised rate during 2200 hrs to 2300 hrs,’‘ the power utility noted in the petition.
If approved, the proposal — which would see the peak consumption period extended by two hours — would impact the power bills of consumer categories with ToD tariffs as peak-hour consumption is charged at a higher rate than the normal, power sector sources said.
In the domestic category, high-end consumers having consumption above 500 units have ToD metering. The KSEB had introduced ToD metering and differential pricing in 1997. As per the timings fixed for differential pricing, 8 a.m.-6 p.m. is ‘normal time zone’, 6 p.m.-10 p.m. is ‘peak’ time zone, and 10 p.m.-6 a.m. ‘off-peak.’
ToD tariffs are designed to encourage consumers to shift their peak-hour electricity usage to off-peak hours to reduce the pressure on the grid, a KSEB official said.
The commission will take a final decision on the tariff proposals after conducting public hearings.
Under the RDSS, the KSEB plans to roll out smart prepayment meters from the next financial year onwards and complete the installation in phases by 2025 as required by the Centre.
