Differential Tariffs as a Driving Force for Electrical Energy Conservation

Abhinav V. Deshpande
Power Factor Penalty; Time of Day Tariff; Demand and Energy Charges
India is on the threshold of a growth trajectory. However, it is also facing a shortage of the supply, which is increasing day by day. At the present rate of growth, the energy demand is set to increase by nearly two folds by 2020. Out of many available methods, the simplest and the most effective method of minimizing this gap would be promoting the energy conservation. The utilities are trying their best on both the supply side management (SSM) and the demand side management (DSM) by introducing the different types of tariffs. In this research paper, a comparative study of the High Tension (HT), Tariff structure of five Indian states is carried out. The components of the tariff structure that are compared are Billing Demand, Energy Charges, Time of Day (TOD) tariff, Power Factor Incentive/Penalty, Load Factor Incentive, Penalty for exceeding the Contract Demand (CD) and Harmonic Penalty.
[1] Government of India, “Load Generation Balance Report 2011-12”, A Report by Central Electricity Authority (CEA), Ministry of Power, available at http://www.cea.nic.in/reports/yearly/lgbr_report.pdf
[2] Verma V. S., “Energy Efficient Technologies Use in India-An Overview 2004”, Bureau of Energy Efficiency (BEE), 20 August 2004.
[3] Sayeed P. M., “Energy Conservation in India, on 14th December 2005”, Ministry of Power, Government of India, available at http://www.powermin.nic.in/whats_new/pdf/ Ministers_artificial.pdf
[4] Energy Value-Efficiency Improvement Initiatives by HT Consumers”, Power Line, Volume 16, No. 7, March 2012, pp. 51.
[5] Kalyanaraman M., “Target High Tension Users for More Energy Efficiency”, the Times of India, 25 April 2011.
[6] Ravi Babu P., “Water Demand Side Management through Fuzzy Logic”, CISCON National Conference, Manipal Institute of Technology, Manipal, 02-03 October 2006.
[7] Arno Middleberg, Jiangfeng Zhang and Xiaohua Xia, “An Optimal Control Model for Load Shifting-With Application in the Energy Management of a Colliery”, Applied Energy, 86 (07-08), pp. 1266-1273, July 2009.
[8] Yik F. W. H. and Lee W. L., “Rebate as an Economic Instrument for Promoting Building Energy Efficiency I Hong Kong”, Building and Environment, Volume 40, Issue 9, September 2005, pp. 1207-1216.
[9] ABPS Infrastructure Advisory Private Limited, “Approach Paper for MERC MYT Regulations-FY 2010-11 to 2014-15”, pp. 275-277.
[10] Maharashtra State Electricity Distribution Company Limited, HT Tariff Booklet, available at http://www.mahadiscom.in/tariff/Tariff-Booklet-high-may07.pdf
[11] Madhya Pradesh Electricity Regulatory Commission, Tariff Order, available at http://www.mperc.nic.in/310312-Final-Tariff-Order-FT-12-13-LV-HV-SCH.pdf, pp. 195-219
[12] Andhra Pradesh Central Power Distribution Company Limited, Retail Supply Tariff Schedule for FY 2011-12, available at http://www.apcentralpower.com/tariffs/tariffs.jsp, pp. 01-07.
[13] Tamil Nadu Electricity Regulatory Commission, “Determination of Tariff for Generation and Distribution”, Order No. 1 of 2012-dated 30-03-2012, available at http://www.tangedco.gov.in/linkpdf/T. O No. 1.pdf, pp. 319-324.
[14] Gujrat Electricity Regulatory Commission, Part II, Tariff for Supply of Electricity at HT and EHT, available at http://www.gercin.org/tarifforderpdf/en_1304750473.pdf, pp. 180-192.

Received  : 21 November 2019 

Accepted : 24 December 2019

Published : 31 December 2019 

DOI: 10.30726/esij/v6.i4.2019.64001

Differential Tariffs as a Driving Force for Electrical Energy Conservation