New Electricity Billing System: Different Tariffs for Day and Night—What It Means for You!
Government Introduces "Time of Day" Tariff, Electricity Bills May Increase by 10-20%
Electricity consumers in Uttar Pradesh are set to experience a major change in their power bills as the government implements a new electricity tariff system. Known as the Time of Day (TOD) tariff, this system will introduce different electricity rates for daytime and nighttime usage. As a result, household electricity bills may rise by 10 to 20 percent.
This policy, already applied to large and small industries, will now be extended to all consumers from April 1, 2025. While the government claims this system will help manage power demand efficiently, many consumers and organizations are opposing it, calling it unfair and burdensome.
Let’s take a closer look at how this new electricity billing system will work and what it means for you.
What Is the "Time of Day" Tariff System?
The Time of Day (TOD) tariff is a system where electricity prices vary based on the time of usage. Under this rule:
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Daytime electricity rates will be higher (typically during peak hours when demand is high).
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Nighttime electricity rates will be lower (when electricity consumption is lower).
This system is designed to reduce electricity demand during peak hours, encouraging consumers to use appliances more during off-peak hours.
How Will It Affect Your Electricity Bill?
From April 1, 2025, when this rule takes effect, household electricity costs may rise by 10-20%. Consumers who use more electricity during the day—when tariffs will be higher—will see an increase in their monthly bills. However, those who can shift their usage to nighttime hours may benefit from lower rates.
While businesses and industries have been following the TOD system for a while, applying it to regular households is a new move that has sparked controversy.
Consumer Reactions: Opposition and Legal Action
Many consumers are worried and unhappy about this new policy. Consumer Council President Awadhesh Kumar Verma has strongly opposed the rule, stating that it is unfair to common citizens. He has vowed to fight a legal battle to stop its implementation.
On the other hand, the Energy Department claims that the TOD system will benefit consumers by giving them the opportunity to control their electricity costs. Officials argue that households can save money by reducing electricity use during peak hours and shifting power-intensive activities—like running washing machines, water heaters, and air conditioners—to the cheaper nighttime tariff period.
However, many consumers disagree, saying that this policy is just a way for the government to increase revenue while putting an extra financial burden on the public. One consumer, who preferred to remain anonymous, stated:
"This rule makes no sense. The government will profit, but consumers will struggle with higher bills and inflation."
Why Is the Government Implementing This System?
The Time of Day tariff is not unique to Uttar Pradesh—it is a system used in many countries to manage electricity demand more effectively. The main reasons for its implementation include:
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Reducing power shortages during peak hours by encouraging consumers to shift usage to low-demand periods.
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Lowering the risk of blackouts by spreading electricity consumption more evenly throughout the day.
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Promoting energy efficiency by encouraging people to use electricity wisely.
While the government insists that this system is meant to benefit both the power grid and consumers, many believe it will mainly increase household expenses.
What Should Consumers Do?
If this rule is implemented, consumers can take steps to manage their electricity usage smartly:
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Use heavy appliances at night when electricity rates are lower.
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Reduce usage of non-essential appliances during peak hours to avoid higher charges.
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Invest in energy-efficient appliances that consume less electricity.
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Consider using solar energy to offset daytime electricity costs.
Final Thoughts: Is This a Good or Bad Move?
The Time of Day (TOD) tariff system brings both pros and cons. While it aims to balance electricity demand and promote energy efficiency, it also places an additional financial burden on consumers—especially those who have no choice but to use electricity during peak hours.
As debates continue, consumer organizations are preparing legal action, while the government stands firm on the decision. Whether this system will actually help consumers or just increase electricity costs remains to be seen.
For now, Uttar Pradesh residents should prepare for the new billing structure and look for ways to optimize their electricity usage to avoid excessive bills.