Seminar onVarious Types of Power Tariff in IndiaPresented By,Ambreesh Kumar Singh(111504)Lalat Sankar Nayak (111518)

ContentsWhat is Power Tariff?Objective of TariffRegulation for Tariff FixationGeneral Tariff FormTypes of Power Tariff in IndiaConclusion

What is Power Tariff?Electric utilities drive their income from customers through electricity bills hence different methods of charging the customers are known as tariff.

Objectives of Tariff

Regulations for Tariff FixationElectric energy must be made available instantly on demand.Electric supply authorities have jurisdiction only up to the electricity meter.Since it is a monopoly business, it has to be subjected to government control specially as regards fixation of tariff.The electric supply authorities directly sale the commodity to the consumer.The quality of service.

General Tariff FormQuite a large number of tariffs have been proposed from time to time and are in use. They are all derived form the following equation:

Where,A= total amount of bill for a certain period (say one month)x= maximum demand during the period (kW or kVA)y=total energy consumed during the period (kWh) c=unit charge for maximum demand, Rs. per kW(or Rs. per kVA)d=unit cost of energy, Rs. Per kWh.f=constant charge, Rs.

A= cx + dy + f

Types of Tariff PlanFlat demand rateStraight meter rateBlock meter rateHopkinson demand rateDoherty rateWrite demand rateSpot Pricing (T.O.D)

Flat Demand RateThe flat demand rate can be expressed in the form, A= cxThe bill depends only on the maximum demand irrespective of the amount of energy consumed.The cost of metering equipment and meter reading is eliminated by the use of this form of tariff.

Straight Meter RateThis can be represented by the equation: A= dyThe charges depend on the energy used. This tariff is sometimes used for residential and commercial customers. Advantage: SimplicityDisadvantages: A customer who does not use energy has zero bill through he has caused the utility to incur a definite expenditure due to its readiness to serve him. This method does not encourage the use of electricity.

Block Meter RateThis meter rate charges the customers on a sliding scale and it can be expressed in the form:

Generally the charge and energy consumption are divided into three blocks,A high rate for initial unitsA lower rate for next unitsA still lower rate for the remaining units.

Hopkinson demand rateThis tariff , also known as two part tariff, can be expressed in the form

This tariff is used for industrial customers.Disadvantage: Problem of measuring the max. power demand of the customers.

Doherty rateThis rate, also known as three part tariff, extends the two part tariff by adding a constant term as

This tariff is suitable for industrial customers.

Wright demand rateWright demand rate intensifies this inducement by lowering both the demand charge and energy charge for a reduction in maximum demand i.e. an improvement in load factor.This tariff is generally specified for those industrial customers who have a control over their maximum demands

This encourages the customer to reduce his energy requirement at times of peak load and use more energy when supply is abundant and prices are low.Spot PricingThe spot pricing rate=Incremental operating costQuality of supply component+Contd.

Partial spot pricing in the industries and commercial rate structures is also known as Time of Day Tariff.TOD: This tariff design features electricity tariffs that vary by time period, being higher in peak periods and lower in off-peak period. The simplest TOD tariff can be structured as a two period tariff, a peak period and an off-peak period.

Contd.

Relationship between Risk of Consumer and utility

ConclusionPower tariff plays an important role in the economical strategy of any country, hence it is very essential design the appropriate structure of tariff plan. At the same time the plans should able to maintain balance among all the types of customers.