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					</table>The Tamil Nadu Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener">TNERC</a>) has reduced the rooftop solar network charges for all Micro, Small, and Medium Enterprises (MSME) in the state by 50% from ₹1.53 (~$0.018)/kWh to ₹0.765 (~$$0.009)/kWh.
First introduced in November 2021, the state had <a href="https://www.mercomindia.com/tamil-nadu-sets-generic-tariff-%e2%82%b93-61-kwh-for-rooftop-solar-10-kw" target="_blank" rel="noopener">imposed</a> a network or wheeling charge of 20% for domestic consumers of up to 10 KW load and 75% for consumers with a load of more than 10 kW.
The Commission also issued an order addressing Time of Day (ToD) charges. This directive, originating from the MSME Department, mandates reducing ToD charges from 25% to 15% for LT industries (III-B) during peak hours.
The government exempted LT-IIIB industries from paying peak hour charges until the installation of smart meters.
The state regulatory body further allowed the reduction of power tariff for low-tension multi-tenement consumers to ₹5.5 (~$0.066)/kWh from ₹8.15 (~$0.098)/kWh.
The tariff applies to tenements without lift facilities, specifically those with ten or fewer residents and three floors or less for common lighting and water supply.
The reduced tariff is effective from November 1, 2023, to March 31, 2024.
Subsequently, Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener">TANGEDCO</a>), recognizing the potential revenue shortfall due to these changes, requested a subsidy of ₹1.96 billion (~$23.5 million), which was granted by the government.
The Energy Department outlined compensation for LT-IIIB industries and MSMEs at ₹1.91 ($0.023)/kWh and ₹0.765 ($0.009)/kWh, respectively.
With the Commission acknowledging the government&#8217;s directive, TANGEDCO sought to issue a provisional tariff subsidy order to offset the anticipated revenue shortfall.
TANGEDCO outlined a detailed claim for a provisional tariff subsidy of ₹920.3 million (~$11.03 million), categorizing it for the tariff rate reduction for multi-tenements consumers, non-collection of peak hour charges for LT III-B industries, and the reduction of rooftop solar network charges for MSMEs.
The Commission approved the provisional subsidy, emphasizing the need for reconciliation based on actual consumption and revenue assessments. TANGEDCO must submit quarterly reports for this reconciliation within 60 days.
Earlier this year, the Commission <a href="https://www.mercomindia.com/tamil-nadu-hikes-retail-tariffs-fy24/" target="_blank" rel="noopener">increased</a> the retail electricity tariff for high-tension industrial consumers by 2.2% to ₹6.90 (~$0.084)/kWh from the earlier ₹6.75 (~$0.082)/kWh. Similarly, the retail tariff for commercial consumers was increased by 2.4% to ₹8.70 (~$0.11)/kWh from ₹8.50 (~$0.10)/kWh.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Tamil Nadu Cuts Rooftop Solar Network Charges by 50% for MSMEs

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					</table>Kerala State Electricity Board (<a href="https://kseb.in/index.php?lang=en" target="_blank" rel="noopener">KSEB</a>) has invited bids for the supply of 20,000 low tension (LT) bi-directional energy meters with Class 1 Accuracy and liquid crystal display and time of day (ToD) facility.
The tender comprises the supply of 6,500 LT single-phase, two-wire, 5-30A bi-directional meters and 13,500 LT three-phase, four-wire, whole current 10-60A static bi-directional meters.
The meters must also be Device Language Message Specification (DLMS) compliant.
A bi-directional energy meter allows consumers and electricity distribution companies to get information on the export and import of energy generated from a solar system and the grid. It also measures the difference between the generator’s supply and the customer’s load demand.
The last date to submit the bids is September 13, 2023. Bids will be opened on September 16.
The estimated cost of the project is ₹34.49 million (~$416,937).
Bidders must submit an earnest money deposit of ₹345,000 (~$4,171) and a bid submission fee of ₹44,250 (~$535).
Kerala government public sector undertakings are exempted from submitting the EMD. Micro, Small and Medium Enterprises with Udyog Aadhar are exempted from EMD as well as the bid submission fees. For new entrants, the EMD amount will be 10% of the original amount.
Bidders must submit six single-phase bi-directional energy meters and three-phase static bi-directional energy meters each for testing at TMR, Pallom, a day before the bid opening.
The successful bidder must provide a minimum five-year guarantee on the meters from the acceptance date of the last consignment by KSEB.
Bidders must have at least three years of experience in manufacturing, testing, and supplying these meters to any of the power utilities in India. The firm should have sufficient financial capacity to manufacture and supply the required number of meters.
They should have a valid BIS certification with the S mark issued by the Standardization Testing and Quality Certification Directorate of India and ISO Certification 9001/14001.
In the last three financial years, the firm should have supplied a minimum of 50% or more of the tendered quantity per annum to any power utility in India.
All the state PSUs and local MSMEs in Kerala will get a price preference of up to 15%, which means they will be entitled to get up to 50% of the order quantity if they can quote a rate within 15% of the L1 price.
The new entrants participating in the tender should have a minimum average annual turnover of 20% of the probable contract amount for the last year. They must submit the latest solvency certificate for an amount equivalent to 25% of the probable contract amount or more.
They must also submit a type test certificate, ISI license, DLMS certification, S Mark, and CMMI level-III appraisal document at the time of bid submission.
The new entrants will be considered for a trial order limited to 10% of the tendered quantity.
In January this year, the Agency for New &amp; Renewable Energy Research and Technology <a href="https://www.mercomindia.com/keralas-anert-bids-procure-1000-smart-meters" target="_blank" rel="noopener">invited</a> bids to procure 1,000 smart energy meters for the Solar City Project implemented in Thiruvananthapuram.
Previously, KSEB <a href="https://www.mercomindia.com/kerala-tender-100-mw-solar-projects" target="_blank" rel="noopener">invited</a> bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects.
Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real time.

Kerala DISCOM Floats Tender for 20,000 Bi-Directional Energy Meters

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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>, in a recent amendment to the Electricity (Rights of Consumers) Rules, 2020, has directed state commissions to ensure the tariff for solar hours (the duration of eight hours in a day)  must be at least 20% lower than the normal tariff for all consumer categories (except agricultural consumers).
The Ministry amended the rules to introduce provisions for Time-of-Day (ToD) tariffs and regulations around smart and prepaid meter usage for consumers.
The amended rules came into effect on June 14, 2023.
The Ministry has introduced the concept of ToD tariffs to promote efficient energy usage. The ToD tariff refers to the differentiated tariffs for peak and non-peak hours in a day.
Commercial and industrial consumers with higher consumption tend to affect the grid stability during peak hours. The new ToD tariffs are expected to play a crucial role in encouraging the C&amp;I segment to shift their demand to non-peak hours with cheaper electricity rates compared to peak hours when it would be more expensive.
Under the new rule, state commissions are responsible for determining the ToD tariffs. The newly amended rule 8A of the Electricity (Rights of Consumers) Rules, 2020, specifies that ToD tariffs for commercial and industrial consumers with a maximum demand exceeding 10 kW will be effective no later than April 1, 2024.
For other consumers, excluding agricultural consumers, the ToD tariffs will be implemented by April 1, 2025. Consumers with smart meters will have ToD tariffs immediately after installation.
During peak periods, the tariff for commercial and industrial consumers must be at least 1.20 times the normal tariff, while for other consumers, it should be at least 1.10 times the normal tariff.
It is important to note that the ToD tariff will apply to the energy charge component of the standard tariff.
Union Power and New &amp; Renewable Energy Minister Shri R. K. Singh said that the ToD is a win-win for consumers as well as the power system. “The TOD tariffs comprising separate tariffs for peak hours, Solar hours and normal hours, send price signals to consumers to manage their load according to the Tariff. With awareness and effective utilization of ToD tariff mechanism, consumers can reduce their electricity bills. Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits. During non solar hours thermal and hydro power as well as gas based capacity is used – their costs are higher than that of solar power – this will be reflected in Time of Day Tariff. Now consumers can plan their consumption in order to reduce their power costs – planning more activities during solar hours when power costs are less.”
Singh affirmed that the ToD mechanism would ensure better grid integration of Renewable Energy sources, facilitating faster energy transition for India. It would also improve the management of renewable generation fluctuations, and incentivize demand increase during periods of high RE generation hours, thereby increasing grid integration of larger quantities of renewable power.
The amendments also introduce Rule 8B, emphasizing tariff information display.
Distribution licensees must prominently display the tariffs for each consumer category on their websites. Consumers must be notified of any tariff changes, excluding fuel surcharge and other charges, at least one month in advance. This information will be communicated through distribution licensee&#8217;s websites, energy bills, SMS, mobile applications, and similar mediums.
Smart and Prepaid Meters
One key change outlined in Rule 5 of the Electricity (Rights of Consumers) Rules, 2020, under the new sub-rule (5), is that all types of smart meters must be remotely read at least once daily.
In addition, other pre-payment meters should be read by an authorized representative of the distribution licensee every three months.
Consumers will have access to their energy consumption data through various channels such as websites, mobile applications, and SMS. Furthermore, consumers with smart pre-payment meters can check their daily consumption and balance amounts.
The amendments also address the issue of penalties based on the maximum demand recorded by smart meters. As per the newly introduced sub-rule (5A), consumers will not face penalties for the period before installing smart meters. Moreover, if the recorded maximum demand exceeds the sanctioned load in each month, the bill calculation for that billing cycle will be based on the actual recorded maximum demand. Consumers will be informed of this change through SMS or mobile applications.
The new amendments aim to enhance consumer rights and improve the efficiency of electricity consumption using smart meters and innovative ToD tariff structures.
In January, Union Minister of Power and New and Renewable Energy R.K. Singh <a href="https://www.mercomindia.com/consumers-smart-meters-billed-on-actual-load-minister" target="_blank" rel="noopener">advised</a> states to ensure no penalty is levied on any consumer for higher load discovered after installing prepaid smart meters.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.
The article is updated with Union Power Minister R.K. Singh&#8217;s quote on the ToD tariff implementation, released on June 23, 2023

Consumers to Pay 20% Lower Electricity Tariff During Solar Hours

Taking another step forward towards propelling the growth of intelligent transportation in the state, the Telangana State Electricity Regulatory Commission (<a href="http://www.tserc.gov.in/" target="_blank" rel="noopener">TSERC</a>) has approved a tariff of ₹6.00 (~$ 0.083)/kWh for electric vehicle charging or battery swapping stations.
The average cost of service (CoS) for the entire state has been fixed at ₹6.04 (~$0.084)/kWh, according to a notification issued by the TSERC.
The DISCOMs had proposed a tariff of ₹6.10 (~$0.085)/kWh.
<a href="https://mercomindia.com/wp-content/uploads/2018/11/tev.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-11884" src="https://mercomindia.com/wp-content/uploads/2018/11/tev.png" alt="Tariff of ₹6/kWh to be Applicable on Electric Vehicle Charging Stations in Telangana" width="511" height="227" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/11/tev.png 511w, https://cms.mercomindia.com/wp-content/uploads/2018/11/tev-300x133.png 300w" sizes="(max-width: 511px) 100vw, 511px" /></a>
The commission, while setting the tariff, considered that the central government in its draft amendments to the Tariff Policy had stated that the applicable tariff for charging stations will be less than or equal to the average cost of supply determined by the AT and C (Aggregate Technical &amp; Commercial) loss level of 25 percent or actual, whichever is lower.
The commission did not concede to the same rate of fixed tariff applicable in other states arguing that there are several factors which determine the tariff such as financial viability of the distribution licensee, and therefore one rate cannot fit the bill for all the states in India.
It also rejected the use of open access through renewable energy sources for charging stations as rules and regulations are in vogue at present to release power supply to charging stations.
The commission allowed for the promotional tariff, given that the lost revenue will be recovered from other sources by the licensees, either in the form of subsidy or otherwise through higher realization of the tariff from other categories of the consumers. The TSERC also believes that Time of Day (ToD) tariff will help DISCOMs to sell more power and help in better load management and system maintenance.
The commission made these observations after a public hearing based on a petition filed by the Southern Power Distribution Company of Telangana Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited. The two entities had filed pleas before the commission seeking determination of tariff for electric vehicle charging stations (battery swap) under section 64 of Electricity Act, 2003.
Both had proposed the rate under commercial category in low tension (LT) and high tension (HT) to provide some clarity on the applicable tariff for electric vehicles charging stations.
The commission felt that now, there is an increasing need to gear up to meet the charging demand by the electricity supply industry. Therefore, the petition filed by the applicants were taken up for consideration in July 2018.
Back in 2017, the commission in its order had observed, “The commission is of the view that the concept of electric vehicle charging stations is at a very nascent stage without any concrete developments and hence, the commission does not find it prudent to decide on the categorisation of the same at this stage.”
In this petition, the applicants argued that the categorization of electric vehicles is present in various states for promoting the electric vehicles charging infrastructure. It also said that Telangana has issued a draft Electric Vehicle (EV) Policy that envisages the creation of a separate category for power tariff for electric vehicles charging for both public and private.
The stakeholders also requested the commission for time-bound waiver of demand charges and full waiver for state owned transport organization as the utilization of the charging stations is not expected to be at its optimum level initially, for nearly 4 to 5 years.
To speed up India’s electric vehicle (EV) revolution, the government of India announced a few months ago that it is planning to subsidize EV <a href="https://mercomindia.com/govt-mulls-subsidies-ev-charging-infrastructure/" target="_blank" rel="noopener">charging infrastructure</a> in the country.
Moreover, the Ministry of Power recently issued a <a href="https://mercomindia.com/ministry-of-power-no-license-ev-charge-station/" target="_blank" rel="noopener">clarification</a> stating that no license is required to operate EV charging stations in India. This is expected to boost the participation of more private players in the creation of a nationwide EV charging station infrastructure.
To propel the growth of EVs in India, the government <a href="https://mercomindia.com/gst-li-ion-batteries-reduced-from-28-to-18-percent/" target="_blank" rel="noopener">recently</a> slashed applicable rate of the Goods and Services Tax (GST) on lithium ion (Li-ion) batteries.
Many states have also geared up for the uptake of EVs as a means of mainstream mobility. Recently, in a <a href="https://mercomindia.com/states-poised-lead-ev-revolution/" target="_blank" rel="noopener">report published by Mercom</a>, various EV hotspots of the country were analyzed.
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