Chandigarh Set to Launch Time-of-Day Electricity Pricing System
The administration in Chandigarh is gearing up to implement time-of-day (TOD) electricity charges across all consumer categories, following formal approval from the Joint Electricity Regulatory Commission (JERC). This strategic move aims to modernize the power distribution framework and promote energy efficiency in the region.
Gradual Rollout Led by CPDL
Chandigarh Power Distribution Limited (CPDL) will spearhead the phased introduction of the TOD system, commencing with industrial users. This approach allows for a smooth transition and enables the utility to assess impacts before expanding to residential and commercial sectors. The initiative represents a significant shift in how electricity tariffs are structured, moving away from flat rates to dynamic pricing based on consumption patterns.
How the TOD System Works
Under the new framework, electricity rates will fluctuate according to the time of day, designed to incentivize consumers to shift their usage to off-peak periods and better align with solar generation cycles. A multiplier ranging from 0.8 to 1.2 will be applied to standard energy charges, creating three distinct pricing tiers:
- Solar/Off-Peak Hours (9 AM to 5 PM): Consumers will benefit from a 20% rebate, equivalent to a factor of 0.8, which reduces energy charges by approximately one-fifth. This window coincides with peak industrial operating hours, offering substantial cost-saving opportunities for factories equipped with TOD-compatible meters.
- Night Off-Peak Hours (11 PM to 7 AM): No additional TOD charges will apply during this eight-hour period, maintaining standard rates to encourage overnight usage.
- Peak Hours (7 AM to 9 AM and 5 PM to 11 PM): Energy charges will increase by 20%, with a factor of 1.2, over the normal rate. This surcharge applies during eight hours daily to discourage consumption during high-demand periods.
Benefits and Strategic Alignment
A spokesperson for CPDL emphasized that the TOD system is poised to deliver significant advantages, particularly for industrial users. The daytime rebate aligns perfectly with solar generation hours and typical work schedules, enabling factories to optimize operations and lower electricity costs by shifting energy-intensive activities to discounted periods. This not only reduces expenses but also supports grid stability and promotes renewable energy integration.
Regulatory Background and Implementation Timeline
The JERC initially approved the TOD charges in July 2024, when electricity distribution was managed by the UT electricity department. However, implementation was delayed at that time. Following CPDL's takeover of operations on February 1, 2025, the company incorporated the already approved TOD framework into its tariff petition. After thorough review, the JERC revised and confirmed the structure in October 2025, paving the way for the current rollout. This regulatory endorsement underscores the commitment to advancing sustainable energy practices in Chandigarh.
