Top 4 Commercial Sectors Targeted for the New “Time-of-Use” Electricity Pricing Plan

Energy Minister Patrick Assirvaden has unveiled a new “Time-of-Use” (ToU) tariff structure designed to incentivise major electricity consumers to shift their usage patterns and alleviate pressure on thermal power stations.

The initiative, introduced by the Central Electricity Board (CEB) as part of the Carbon Neutral Renewable Energy Scheme, aims to reward large-scale users for deferring their consumption to off-peak periods.

The scheme is primarily targeted at significant commercial entities, including:

• Shopping centres
• Hotels
• Large enterprises
• Banks

Financial Incentives for Renewable Energy

Under the new mechanism, participating businesses will see a substantial increase in the buy-back rates for electricity they sell back to the CEB.

The remuneration for surplus energy has been significantly revalued to encourage local production.

Previously, the CEB paid Rs 1.86 per kilowatt-hour; under the new scheme, this rate will more than double to Rs 4.20 per kilowatt-hour.

Implementation and Strategy

Speaking at a press conference this afternoon, Minister Assirvaden detailed the modalities of the shift, noting that the primary goal is to provide more advantageous rates while simultaneously reducing the strain on the national grid’s thermal capacity.

For the first twelve months, participation in the Time-of-Use scheme will remain voluntary, allowing businesses a transitional period to adapt their operations to the new pricing structure.

Source: Defi Media