The Uttarakhand Electricity Regulatory Commission (UERC) has decided to retain the existing time-of-day (ToD) tariff structure and defer any immediate changes to peak and off-peak hours, even as it initiates a formal consultation on introducing hour-linked tariffs for solar and non-solar energy in line with central rules.

The Commission has maintained the current peak surcharge of 30% and the off-peak rebate of 25%, citing the absence of adequate smart-meter–based, time-block-wise consumption data and the ongoing rollout of advanced metering infrastructure across the state.

While retaining the existing framework for now, the Commission has directed Uttarakhand Power Corporation (UPCL) to propose revised ToD slots, solar-versus-non-solar hour differentiation, and a revenue-impact assessment in the FY 2026–27 tariff petition.

It has also invited feedback from stakeholders by January 31, 2026.

Background

The Ministry of Power notified the Electricity (Rights of Consumers) Amendment Rules, 2023, on June 14, 2023, which inserted a new Rule 8A mandating the implementation of ToD tariffs.

The amended rules require ToD tariffs for commercial and industrial (C&I) consumers with contracted demand above 10 kW by April 1, 2024, and for all other consumers, except agriculture, by April 1, 2025.

The rules also prescribe that peak-hour tariffs must be at least 1.2 times the normal tariff for C&I consumers, while tariffs during solar hours must be at least 20% lower than the normal tariff.

Solar hours are to be defined as eight hours per day by the respective state commissions, with the condition that peak-hour duration should not exceed solar hours, and that ToD applies only to the energy charge component.

In Uttarakhand, the existing ToD framework does not distinguish between solar and non-solar hours and has historically been implemented only for select categories. The Commission noted that ToD implementation for several consumer classes had been deferred due to limited smart meter penetration and the lack of reliable, time-block-wise consumption data.

During tariff proceedings for FY 2025–26, Uttarakhand Power Corporation (UPCL) proposed introducing ToD tariffs after wider smart meter deployment, while in its FY 2026–27 submissions, it sought further deferment to FY 2027–28.

Stakeholders, meanwhile, demanded equalization of peak surcharge and off-peak rebate, abolition or reduction of peak hours, higher off-peak rebates, and alignment of ToD slots with industrial operations.

Smart meter deployment in the state began in August 2024, with UPCL targeting completion by July 2025 for high-tension (HT) consumers and June 2026 for low-tension (LT) consumers.

The Commission has directed that installations for HT industrial consumers be completed by June 2025 and for LT consumers by August 2025, and that monthly time-block-wise consumption data be submitted for all consumers with smart meters.

Commission’s Analysis

The Commission undertook an analysis of unrestricted load curves for winter and summer periods to assess demand patterns.

The data showed a pronounced morning peak during winter months, often exceeding evening demand, with peaks such as 2,523 MW at 8:00 am on January 29, 2025, and 2,477 MW on February 7, 2025. Evening peaks during winter were lower, while summer demand peaked late at night, with a maximum of 2,863 MW at 10:00 pm on June 14, 2024.

Based on this, the Commission rejected stakeholder demands to abolish morning peak hours, holding that such peaks persist from October to March and are critical for demand-side management.

The Commission traced the evolution of ToD charges, noting that peak surcharges were initially set at 50% above the normal tariff in FY 2010-11 and reduced to 30% by FY 2022, while off-peak rebates were gradually increased from 10% to 25% by FY 2025–26. It concluded that the current structure remains appropriate until more granular data becomes available.

A key regulatory gap identified is the lack of explicit definitions of solar hours and tariff signals, rendering the existing framework non-compliant with the 2023 Rules.

To address this, the Commission conducted a comparative analysis of ToD frameworks in 18 states, which showed wide variation in solar hour windows, rebate structures, and peak surcharges, including percentage-based and fixed ₹/kWh mechanisms, seasonal differentiation, and separate treatment for HT and LT consumers.

After receiving stakeholder inputs, UERC will take a final view on implementing a solar-linked ToD tariff regime once smart meter data becomes available.

In December 2025, UERC issued the second amendment to UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) Regulations, 2023 (Principal Regulations).

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