TARIFFTARIFFTARIFFTARIFF

ABOUT TARIFFABOUT TARIFF

VARIOUS TYPES OF TARIFFS

1 - Simple Tariff

2 - Flat rate Tariff

3 - Block Rate Tariff

4 - Two Part Tariff/Maximum Demand Tariff

5 - Power Factor Tariff

6 – Three Part Tariff

SIMPLE TARIFF The tariff which has a fixed rate, per unit energy

consumed.

ADVANTAGES :-This is simplest tariff. :-Even a simple consumer can understand it.

DISADVANTAGES :-There is no differentiation between small and big

consumers. :-The cost is per unit is very high.

FLAT RATE TARIFF It is a type in which different consumers have different rates. A

discrimination exists between small and large consumers.

ADVANTAGES:-Large consumers are encouraged in this type.:-This tariff is simple and easy to calculate. DISADVANTAGES:-Different energy meters are required to be installed at

consumer’s premises.:-The supplier doesn’t get any return for the connection given to

the consumer If he doesn’t consume any energy in a particular period.

BLOCK RATE TARIFF When the total energy consumed is divided

into blocks for the purpose of tariff.

ADVANTAGES:- The consumers are encouraged to consume

more energy. This increase load factor of the system and the cost of generation is reduced.

DISADVANTAGES:- This doesn’t take into account the maximum

demand of the consumer.

TWO PART TARIFF This is the system in which the tariff is related to the

consumer’s maximum demand, and then, to his consumption of energy.

ADVANTAGES:-This tariff is very suitable for industrial consumers who have

higher maximum demand.:-It takes into considerations the maximum demand of the

consumer. DISADVANTAGES:-A maximum demand indicator is to be installed at the premises

for assessing the maximum demand of the consumer.:-The consumer has to pay some fixed amount per kw whether

he consumes energy or not in a particular period.

POWER FACTOR TARIFF The tariff in which the power factor of

the consumer is taken into consideration.

In this there are following types:-(i) KVA maximum demand tariff(ii) Sliding scale tariff/Average P.F Tariff(iii) KWh and KVAR Tariff

THREE PART TARIFF The tariff which charges a consumer in 3 parts.

First Part =: This represents fixed charge which includes interest and depreciation.

Second Part: This is a semi-fixed charge which is calculated on per kw of the maximum demand.

Third Part: This is a running charge which is calculated per kwh of power consumed by the consumer