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Government Weighs Optional Time-of-Use Power Tariff for Industry

Consultations begin to shape a voluntary time-based rate linking prices to supply costs.

Overview

  • The Power Division, which outlined the plan Wednesday, said it is considering a new optional tariff for industrial electricity users.
  • The proposed rate has higher fixed charges based on a plant’s Maximum Demand Indicator, which is the highest power draw in a billing period.
  • Variable energy charges would be set closer to the actual cost of supplying power in each time band to give clearer price signals.
  • The ministry plans wide consultations with factories, chambers, and trade bodies, with a first online conference scheduled for March 26.
  • Officials say the design aims to shift use to off-peak hours, cut peak strain on the grid, and help industry manage costs as oil-driven inflation pressures the economy.