Electrical Engineering ⇒ Topic : Types of Tariff

Types of Tariff

The following types of tariff are commonly used:

Simple tariff: In this type of tariff, there is a fixed rate per unit of energy consumed.

Flat rate tariff: When different types of consumers are charged at different uniform per unit rates, it is known as flat rate tariff.

Block rate tariff: When a given block of energy is charged at a specified rate and the succeeding blocks of energy are charged at progressively reduced rates, it is termed as block rate tariff.

Two-part tariff: In this type, the rate of electrical energy is charged on the basis of maximum demand of the consumer and the units consumed.

Maximum demand tariff: It is similar to two-part tariff. The only difference is that the maximum demand is actually measured by installing maximum demand meter in the premises of the consumer.

Power factor tariff: In this tariff, the power factor of the consumer's load is taken into consideration.

Three-part tariff: In this tariff, the total charge is split up into three parts viz, fixed charge, semi-fixed charge, and running charge.