Electricity Tariff ?

Tariff

The rate at which electrical energy is supplied to a consumer is known as Tariff.

The amount of money calculated by the supplier for the supply of electrical energy to various types of consumers in known as an electricity tariff. Tariff should include the total cost of producing and supplying electrical energy plus the profit. The tariffs depends on the consumption of the electricity of a customer.

Objectives of Tariff

• Recovery of cost of capital investment on generating, Transmission, & Distribution Equipment’s.
• Recovery of cost of production, operation & Maintenance of equipment
• Recovery of cost of metering equipment, billing, collection cost etc..
• Suitable profit on capital investment.

factors influencing tariff design

• Type of load: The tariff of the electric energy varies according to their type of load. The industrial consumer’s tariff is more than the domestic consumers.
• Time at which load is required: The time at which the maximum load required is also essential for the electricity tariff.
• For large load, the consumption rate per kWh should be low.
• The power factor of the load: Tariff design varies according to change in power factor of the load. The low power factor increases the load current which increases the losses in the system and charged more.
• The amount of energy used.