Types of tariff in power plant engineering sector

Types of Tariff:-

  • Simple tariff: When there is a fixed rate per unit of energy consumed, it is called a simple tariff or uniform rate ariff.
  • Flat rate tariff: When different type of consumers are charged at different uniform per unit rates, it is called a 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 at reduced rates, it is called a block rate tariff.
  • Two-part tariff:
    • When the rate of electrical energy is charged on the basis of maximum demand of the consumer and the units consumed, it is called a two-part tariff.
    • Total Charges = Tk. (b kW + c kWh ) Where,
    • a = fixed charge (interest, labor cost, transmission cost etc.)
    • b = charge per kW of maximum demand
    • This type of tariff is mostly applicable to industrial consumers who have appreciable maximum demand
  • Maximum demand tariff:
    • It is similar to two-part tariff with the only difference that the maximum demand is actually measured by
      installing maximum demand meter in the premises of the consumer.
    • This type of tariff is mostly applied to the big consumers. It is not suitable for small consumers as a separate maximum demand meter is required.
  • Three-part tariff: When the total charge to be made from the consumer is split into three parts viz., fixed charge, semi-fixed charge and running charge, it is known as a three-part tariff.
    • Total Charge = Tk. (a + b kW + c kWh) Where,
      • a = fixed charge (interest, labor cost, transmission cost etc.).
      • b = charge per kW of maximum demand.
      • c = charge per kWh of energy consumed.
      • This type of tariff is generally applied to big consumers.

#Power Plant engineering note from our honorable teacher.
Reference Book
Mehta, V.K.,”Principles of Power System
Analysis”;Chapter – 5, pp.87-100

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