Read the following passage carefully:
To address the escalating energy deficit and optimize power distribution, the State Electricity Regulatory Commission (SERC) has mandated the transition to an Advanced Metering Infrastructure (AMI) across all tier-3 municipalities by 2028. Unlike traditional static pricing, AMI enables dynamic Time-of-Use (ToU) tariffs, where electricity rates fluctuate based on real-time grid demand. The policy's explicit objective is to incentivize consumers to voluntarily shift their high-load activities, such as operating agricultural water pumps or heavy machinery, to off-peak hours. This shift aims to flatten the aggregate demand curve and prevent grid failures.
To ensure an equitable transition, the SERC framework includes a 'baseline lifeline quota'—a fixed, subsidized allotment of energy per household per month billed at a flat, non-dynamic rate, regardless of when it is consumed. This quota is calculated based on essential domestic needs, such as lighting and basic ventilation, but deliberately excludes energy-intensive agricultural or commercial operations. Furthermore, the framework stipulates that local distribution companies (DISCOMs) must provide 24-hour advance notice of the next day's dynamic pricing slabs via SMS to registered consumers. The commission posits that providing this information mechanism, combined with financial pricing incentives, will organically lead to a 15% reduction in peak-hour load without requiring direct administrative rationing of power.
Based on the explicit objectives and mechanisms outlined in the SERC framework, a subsequent municipal policy that automatically suspends a household's electricity supply once aggregate peak-hour grid demand reaches critical thresholds would be a valid extension consistent with the commission's operational strategy.
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