The federal government has announced an optional multi-tariff Time-of-Use (ToU) pricing mechanism for industrial electricity consumers. The initiative aims to align electricity costs with actual supply-demand patterns and encourage industries to use energy more efficiently, particularly during off-peak hours.
Under the new framework, industrial users can opt into a system where electricity charges vary depending on the time of day. The mechanism includes fixed charges linked to the Maximum Demand Indicator (MDI), which discourages peak-period consumption, and variable energy charges that reflect the real cost of electricity at different times. Officials say this approach will help manage peak loads, reduce stress on the national grid, and make electricity costs more predictable for businesses.
The Power Division has planned stakeholder consultations with industrial consumers, chambers of commerce, and trade bodies to refine the proposal before final implementation. Authorities emphasize that the ToU tariff is voluntary and designed to enhance industrial competitiveness while promoting cost-effective and efficient electricity usage.