If the proposal to introduce time-of-use rates is approved by the Delhi Electricity Regulatory Commission (DERC), the residential customers in the state will be the first in India to enjoy the benefits of variable power pricing.
While C&I customers in several states have been able to take advantage of variable rates for some time, residential customers have up to now paid a flat rate for their power. The Energy and Resources Institute (Teri) has suggested that three different rates be introduced for times of normal, peak and low demand. The move has been widely welcomed, as it will allow residential customers to run appliances at times of low power demand, when rates are the cheapest, and thus save on their electricity bills.
Distribution companies in the state are also enthusiastic about the proposal, saying that it will enable them to meet industrial demand during peak hours, when residential energy use is expected to decrease.
If the DERC approves the proposal trials will take place before the TOU system is implemented state-wide.