THIRUVANANTHAPURAM: The central government is planning to change the tariff rules in the National Electricity Act in accordance with the smart meter scheme. The move is to implement the new method from April 2024. However, the state government is hesitant to implement smart meters. This will cause a huge loss to the customer.

The new tariff will vary by up to 20 percent between daytime and nighttime fares. The amendment is to protect the rights of electricity consumers including this.

Electricity consumption during the day will be 20 percent less than the normal rate. 10 to 20 percent more at night. Such a different rate can be charged only if you have a smart meter. In states where smart meters are not implemented, electricity rates will be the same during the day and night. Consumers in areas with smart meters will see a 10 to 20 percent reduction in electricity bills.

This is according to the Electricity Consumer Rights Act, 2016, which stipulates that electricity distribution companies should only charge consumers an amount proportionate to the rate at which they purchase or generate electricity. Institutions like KSEB should only charge a rate proportional to the cost of electricity purchase. Solar and wind power can be used at relatively low cost during daytime hours. During the night time when power consumption is high, one has to rely on expensive thermal power. Those who consume more electricity at night should pay the price accordingly. Commercial establishments, traders, people who don't use luxuries like ACs don't need to pay more electricity charges. Keeping this in mind, two types of electricity rates, night and day, are mandated. With the advent of smart meters, it is enough to pay only for the electricity used. Also, there will be a unified tariff system for electricity.

Green energy

The Central Government has asked the various states to inform the various states and the Union Territories about the details of plans to acquire land for setting up solar plants and wind farms and the expected cost. The target is to reach 500 GW of green power generation by 2030. At present, the green power generation is 173.62 GW.

Current method
Bi-monthly billing as per tariff is in effect. in. Five slabs for users up to 250 units. The subsidy rate will be in five slabs of uniform rate above 250 units. There is no difference in night and day rates.

New method
For electricity used during the day the consumers need to pay only 20% less than normal rate. For night time use, this will be 10 to 20% more than the normal rate. Fixed charge, service charge, security deposit won't be there.