The rate at which electricity is supplied to a consumer is known as tariff.
Types of Tariff
There are several types of tariff how ever the following are the most commonly used types of tariff
- Simple Tariff
- Flat Rat Tariff
- Block Rate Tariff
- Two Part Tariff
- Maximum Demand Tariff
- Power Factor Tariff
When there is a fix rate per unit of energy consumed it is called simple tariff. In this type of tariff the price charge per unit is constant. It does not very with increase or decrease in number of unit consumed.
Flat Rat Tariff
When different types of load are charged it different unit per unit rates, it is called a flat rate tariff, In this type of tariff the load of consumer are group in different classes. For example (Light load group & power load group). The rate for per unit of lighting load may be charged low then the rate per unit of power load.
Block Rate Tariff
When a given block of energy is charged at a specific rate and the succeeding blocks of energy are charged at progressive reduce rates. In this tariff the energy consumption is divided into blocks and the price per unit is fixed in each block. The price per unit in the first block is highest. It is progressively reduce for the succeeding block of energy.
Two Part Tariff
In two part tariff the total charge to be made from the consumer is split into two components
The fixed charges depend upon the maximum demand of the consumer, while the running charges depend upon the number of units consumed by the consumer. Main disadvantages of this tariff is that the consumer has to pay the fixed charges irrespective of the fact whether he consumed or not the electricity.
Maximum Demand Tariff
It is similar to two part tariff but only different that the maximum demand is actually MDI meters, In the premises of consumer. This type of tariff is applied to big consumers.
Power Factor Tariff
The tariff in which power factor of the consumer load is taken into consideration is known as power factor tariff.