Are you aware of peak time charges?

Published on Feb 12, 2024

In this blog, let’s look at an interesting concept called peak time charges. So what is peak time? When on the road, you might have experienced huge traffic in the mornings and especially in the evenings when offices and schools are done for the day. This is nothing but the peak time for road traffic.

Similarly, there are peak times in the way we as a society consume electricity.

So what are the peak times for electricity?

This is defined by the DISCOM(distribution companies) through whom you source power. And the peak time differs for each DISCOM depending on the price at which power is available to them at different times of the day and the demand it needs to cater to.

For example, Karnataka has peak times from 6 pm to 10 pm. For Mumbai, peak timings are usually 9 am-12 pm and 6 pm-10 pm. And for Telangana, the peak timings are 6 am-10 am and 6 pm-10 pm (These timings are defined as on Jun 2022).

What is the implication of peak time?

If you are using electricity during peak time, you will be charged an additional amount along with the existing tariff(rate per unit charged by the DISCOM).

In Telangana, you will be charged an additional INR 1/unit used during the peak times along with the existing tariff😮, as per your defined slab (type of building/business as per DISCOM). And in Telangana, you are billed such a charge if you procure electricity from HT(high tension) of 11kV or above. There are DISCOMs that charge for LT (Low Tension) customers too. If you are wondering if your building or industry is getting charged, you can check your DISCOM’s tariff structure online under the column ToD (Time of Day) or ToU (Time of Use) charges. If you are wondering how to read your bill, refer to this for easier understanding.

And there is also an additional rebate(discount in price) if you are using power between 10 pm-6 am. In Telangana, the rebate is INR 1/unit used during such periods. But now, you should be wondering what is the chance that you would be running your building/industry during late nights🤔?

Edited on 12/2/2024

On 23rd of June, 2023, the govt of India amends electricity rules, 2020, by introducing Time of Day Tariff. It is like an extension to the peak hour charges.

Rather than being charged for electricity at the same rate at all times of the day, the price you pay for electricity will vary according to the time of day. Under the ToD Tariff system, Tariff during solar hours (duration of eight hours in a day as specified by the State Electricity Regulatory Commission) of the day shall be 10%-20% less than the normal tariff, while the tariff during peak hours will be 10 to 20 percent higher. ToD tariff would be applicable for Commercial and Industrial consumers having Maximum demand of 10 KW and above, from 1st April, 2024 and for all other consumers except agricultural consumers, latest from 1st April, 2025.

Till now, saving on electricity consumption is a way to cut down on the OPEX. After this new rule, it’s not just about saving electricity, but also doing it in the right time interval to maximize the savings. But how will you know your consumption patterns at these specific intervals? Soul, our IoT dashboard, with minute-to-minute tracking, will help you identify this data and maximize your savings.


Written by Zodhya

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We are Zodhya, a start-up that provides AI-based tech to reduce energy bills and lower emissions for commercial buildings and industries.