(Feature Image: Vyasi HEP power station at Hathyari, Dehradun. SANDRP, June 2023)

This announcement by the government is indeed much belated but welcome step that India plans to increase peak hour power tariff compared to non-peak hour power tariff, beginning with commercial and industrial consumers from April 2024 a year later for others excluding agriculture consumers. The notification mentions it as daytime tariff (during solar hours) and night time power use, but this essentially also helps peak management.

This will not only put a premium on peak hour power consumption and hence generation, but also hopefully ensure that assessment of impacts of the peak hour power generation including at hydropower projects is done and done in a credible way, along with compensating those affected. It will also hopefully ensure that existing hydro capacity is used optimally for peak hour power generation before going for new hydro projects in the name of increasing peak our power generation.

One also hopes that it will lead to better peak hour power management and also considering all the options for such power generation rather than pushing hydro projects blindly in the name of peak hour power generation.

Continue reading “DRP NB 030723: Peak Hour Tariffs to be implemented from April 2024” →