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ToD / TOU tariff structure

Time of Day Tariff Calculator

Peak, normal and off-peak consumption costed separately, with the demand charge alongside — and the figure that actually matters, which is what moving load out of the peak band is worth over a year.

Consumption

Tariff

What could move

Monthly bill
₹5,77,750
Blended ₹9.63 per unit across 60,000 units, including demand and fixed charges.
Worth shifting out of peak
₹1,72,800/yr
Moving 4,500 units a month from peak to off-peak, at the ₹3.20 difference between the two rates.
Peak — 18,000 kWh at ₹9.60₹1,72,800
Normal — 30,000 kWh at ₹8.00₹2,40,000
Off-peak — 12,000 kWh at ₹6.40₹76,800
Energy charge₹4,89,600
Demand charge₹88,000
Fixed charge₹150.00
ToD is costing you₹9,600/mo

Shifting units between bands does not reduce consumption, so it does nothing for the demand charge unless the peak demand itself moves. If the demand charge is the larger line on your bill, cutting the peak matters more than moving units.

For page numbers, keep Headers and footers ticked under More settings in the print dialog.

The gap is the point, not the peak rate

A Time of Day tariff charges different rates at different hours — typically a surcharge of 15–25 % during morning and evening peaks, the base rate through the day, and a rebate of a similar size overnight.

Most reactions to a ToD tariff focus on the peak surcharge, which is the wrong number. What matters is the difference between the peak and off-peak rates, because that difference is what a shifted unit earns. Everything else is just the bill.

If a unit costs 20 % more at peak and 20 % less overnight, moving it saves 40 % of the base rate — not 20 %. That is the entire economics of load shifting in one line.

Who is being paid, and for what

A ToD tariff is not a penalty. It is the utility passing on its own cost structure: evening peaks are met by the most expensive generation on the system, and overnight there is surplus capacity nobody is using. You are being offered a discount for rescheduling.

Two consequences follow. A plant that genuinely cannot move anything is simply paying more, and should say so when the tariff is negotiated. A plant with any flexible load is being handed a saving that costs nothing but a change to a timer.

What can actually shift

LoadShiftable?
Water pumping to an overhead tankAlmost always — the tank is the storage
Cold storage pull-downYes — thermal mass carries through peak
Battery and EV chargingYes, and it is the easiest of all
Batch processes, mixing, grindingOften, with scheduling
Compressed air into receiversPartly
Electroplating, heat treatmentSometimes — long cycles suit night running
Production lineOnly if you move the shift
Lighting, HVAC, officesNo — they follow occupancy

The honest input to this calculator is not “what fraction of our load is in the peak band” but “what fraction could we move without anybody noticing”. On most plants that is 10–30 % of the peak, and it is worth measuring rather than guessing — the method is in turning meter data into savings.

Shifting does not touch the demand charge

This is the trap. A ToD saving is an energy saving: you consume the same units, later. The demand charge is billed on the highest recorded kVA in the month, and moving units between bands does nothing to it unless the peak demand itself falls.

Worse, careless shifting can make demand worse. Move three batch processes to the same off-peak hour and you have built a new peak overnight — one that sets your demand charge for the month while saving a few hundred rupees on energy.

Stagger what you shift. And if the demand charge is the larger line on your bill, the priority is cutting the peak, not moving units — which usually means power factor correction first, because that reduces kVA without touching production at all. Work out what it is worth with the power factor calculator.

Where storage changes the arithmetic

A battery turns a ToD tariff into an arbitrage: charge at the off-peak rate, discharge during the peak. The margin per unit is the rate gap, less round-trip losses of 10–20 %.

Run the numbers before believing it. A gap of ₹2 per unit on a 100 kWh bank cycled daily is a few thousand rupees a month against a capital cost in lakhs — payback measured in years, and the bank wearing out on daily cycling. Storage for ToD arbitrage alone rarely pays; storage that also provides backup, or that soaks up surplus solar, often does. Size it with the battery bank calculator, which applies the depth-of-discharge and rate effects that make nameplate Ah misleading.

Before you act on the number

  • Get the actual band timings from your tariff order. They differ by state and by season, and some tariffs have two peak windows a day.
  • Get the band split from interval data, not from an estimate. Your meter records it; the DISCOM portal usually exposes it.
  • Check whether the demand charge is also time-differentiated. Some tariffs bill peak-hour demand separately, which changes the priority entirely.
  • Confirm the meter supports ToD registers before designing around it — see choosing an energy meter.

The meter has to support it before any of this is real

Time-of-day billing needs a meter that records consumption against a clock, which is not what every connection has. A standard single-rate meter accumulates one register, and no amount of load shifting behind it changes the bill by a paisa.

A TOD-capable meter keeps separate registers per time block and switches between them on an internal real-time clock. That clock is the part worth being sceptical about. It drifts, it has to survive supply outages on a backup cell, and the block boundaries are set by the utility and occasionally revised. A meter whose clock has drifted by twenty minutes bills a portion of your peak consumption at the off-peak rate, or the reverse, and neither party will notice until a dispute brings it up.

Which makes two things worth doing before restructuring a shift around the numbers on this page. Confirm the connection actually has a TOD meter and that the registers are being read separately, because a TOD meter billed on total consumption is common enough to check for. And ask for the block timings in writing, since the seasonal variation applied in several states means the schedule you were quoted may not be the one in force.

Seasons, and the day the arithmetic changes

Most Indian TOD schedules are not constant through the year. The peak window follows the state load curve, and that curve moves — evening peaks lengthen in winter as lighting load arrives earlier, while summer peaks broaden into the afternoon as cooling load dominates.

Some states publish two or three seasonal schedules with different block boundaries and different multipliers. Others keep the timings fixed and vary the rates. A few have introduced a solar-hours block in the middle of the day at a discount, reflecting surplus generation — which inverts the traditional advice, because the cheapest electricity of the day may now be at noon rather than at night.

The practical consequence is that a saving calculated once is a snapshot. A process rescheduled to exploit a night rate is exposed if the tariff order revises that block, and tariff orders are issued annually. Where the change being contemplated is expensive or hard to reverse — a shift pattern, a thermal store, a battery — it is worth checking how stable the schedule has been across the last few orders rather than assuming the current one is permanent.

Questions people ask

How much is moving one unit out of the peak band actually worth?
The gap between the peak and off-peak rates — not the peak surcharge, which is the number everybody quotes. If a unit costs 20 per cent more at peak and 20 per cent less overnight, moving it saves 40 per cent of the base rate. That is the entire economics of load shifting in one line, and it is why a tariff with a modest surcharge but a deep overnight rebate is worth more to a flexible plant than one with a punitive peak and no rebate.
Will shifting load out of the peak reduce my demand charge?
No, and this is the trap. A ToD saving is an energy saving — you consume the same units, later. The demand charge is billed on the highest recorded kVA in the month, and moving units between bands does nothing to it unless the peak demand itself falls. Careless shifting makes it worse: move three batch processes into the same off-peak hour and you have built a new overnight peak that sets the demand charge for the month while saving a few hundred rupees on energy. Stagger what you shift.
What fraction of a plant's load can genuinely be shifted?
On most plants, 10 to 30 per cent of the peak — and the honest question is not what fraction sits in the peak band but what fraction could move without anybody noticing. Pumping to an overhead tank shifts almost always, because the tank is the storage. Cold storage pull-down works because the thermal mass carries through the peak. Battery and EV charging is the easiest of all. Lighting, HVAC and offices follow occupancy and will not move; a production line moves only if you move the shift.
Is a battery worth installing to arbitrage a ToD tariff?
Rarely on the arbitrage alone. The margin per unit is the rate gap less round-trip losses of 10 to 20 per cent, so a ₹2 gap on a 100 kWh bank cycled daily is a few thousand rupees a month against a capital cost in lakhs — payback in years, with the bank wearing out on daily cycling the whole time. Storage that also provides backup, or soaks up surplus solar, often does pay; storage bought for the tariff gap alone usually does not.
Do I need a particular meter for ToD billing?
Yes — one that records consumption against a clock, in separate registers per band. A standard single-rate meter accumulates one register, and behind that meter no amount of load shifting changes the bill by a paisa. Confirm the meter supports ToD registers, and get the band timings from your own tariff order rather than a general description: they differ by state and by season, and some tariffs have two peak windows a day.