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Aneel Proposes Automatic Shift to Time-of-Use Power Rates for 2.5 Million High-Usage Customers in 2026

The change depends on regulatory consultation followed by board approval.

Overview

  • Technical staff outlined three time bands with higher prices around 18:00–21:00, an intermediate window near those hours, and lower prices overnight, on weekends, and on holidays.
  • The initial migration would cover low-voltage users consuming more than 1,000 kWh per month, including large homes, commerce and public services, a group that accounts for roughly a quarter of low-voltage demand.
  • A second phase proposed for 2027 would extend the model to those consuming above 600 kWh per month, adding about another 2.5 million units.
  • Only 0.1% of the 75 million eligible low-voltage customers currently use the optional time-of-use tariff, which the agency cites in recommending automatic enrollment.
  • The proposal aims to improve efficiency and align prices with a grid increasingly supplied by intermittent renewables, with consultation set to address opt-out rules and metering needs.