Overview of Existing Electricity Tariff Structure & Residential Load Pattern in Maharashtra: A Case Study

Author Name(s): Archana S. Talhar, Sanjay B. Bodkhe, Apurva Ambade, Laxmankumar S. Belge
Author Email: archanabelge2@gmail.com

Abstract

Use of energy sensibly, based on the availability of Time of Day (ToD) tariff, is the most important tool in demand side management. ToD offers a variety of prices at different time intervals and generally remains same for all seasons. This paper presents an overview of electricity tariff structures, objectives of tariff policy, slab wise tariff structure, major components of electricity tariff and reason for tariff hike in Maharashtra state. It is observed that the slab wise tariff is compulsory for residential consumers whereas ToD tariff is compulsory for non-residential consumers. Due to the modern lifestyle, energy consumption of residential consumers is also increasing; so now onwards, the slab wise tariff will not work for controlling electricity bill. The right solution will be ToD tariff, which is already available but only for non-residential consumers. Therefore, a survey is carried out in Nagpur, Maharashtra State, to verify up to what extent, the actual residential load consumption pattern, matches with the existing ToD slots of sample utility. Maharashtra State Electricity Distribution Company Limited (MSEDCL) was considered as it is one of the old and major utility serving the Maharashtra. During this survey, it is found that in winter and rainy seasons, the residential load curve matches more than 90% with the existing ToD slots. Whereas, in the summer season, the match is very less. Hence, based on the actual survey data, this paper proposes new ToD slots for residential consumers.

Introduction

The electricity cost is divided into two parts: 1st part is static cost (fixed) and the 2nd part is dynamic cost (variable). It is also called as Two Part Tariff. Static cost consists of funding cost i.e. interest on loan capital, interest on working capital, depreciation cost, return on equity (profit), operation & maintenance expenses, income tax, tax liabilities of power generation, transmission and distribution network etc. This static cost is recovered from fixed charges or demand charges in accordance with Electricity Act (EA) 2003 and National Tariff Policy. The dynamic cost includes the fuel cost, operation and maintenance cost, cost of electricity purchased from other utilities, cost of power lost in transmission & distribution, state levies such as surcharge, tax, etc. This dynamic cost is recovered from energy charges [1] – [2].

Conclusion This paper has presented an overview of existing electricity tariff structure & residential load pattern in Maharashtra state. Also discusses a case study which present a comparison between the actual load pattern of residential consumers with existing ToD slots of MSEDCL for LT – II (B) non-residential. It is observed that 90% of the residential load consumption curve in winter and rainy seasons is similar to the MSEDCL’s ToD slots of LT – II (B) non-residential consumers; therefore, slight modifications are suggested in winter and rainy seasons if ToD is implemented to residential consumers. For both the seasons, proposed time slots will remain same. Whereas, in the summer season, the scenario is totally different, hence new slots are proposed

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