What is TOD tariff?

• Consumption varies throughout the day (and/or season) so usage pattern varies accordingly and hence demand.
  In certain timing of the day, electricity demand attains its peak. Normally Indian utility experiences morning peak and evening peak.
• The demand-supply gap is increasing day by day.
• The need of supplying the peak demand causes an increase in generations capacity and hence cost of generations as well.
• The present scenario is, Peak power is very costlier than off-peak power.
• Peak hours suffer from the issue of limited power availability.
• During these periods supplier has to generate or purchase the power at the much higher cost compared to less price paid by the consumer for the same.
• Hence, flattening of the load curve even distributions of power demand throughout the time of day is essential. It helps in reducing the burden on the system as well as the cost of generations.

To reduce the peak power demand, there are two options,

• Reductions in power demand during peak hours.
• Overall decreases in power demand.

Demand-side technologies such as time of Use initiative plays a major role in load curve flattening by encouraging the consumer to change energy usage behaviour by altering usage timing for active load shifting.

In ToU, tariff structure the consumer is charged at different rates for his electricity consumption during different durations of the day.