Tariff is of these types:
1. Simple Tariff: Uniform cost / unit of energy consumed. Simple 2 comprehend by consumer but doesn’t facilitate usage of electricity and provides for no discrimination among the type of consumers
2. Flat rate tariff: Uniform cost/ unit of energy consumed set differently for different types of consumers. So a consumer with power load will be charged at lesser rate than lighting loads. But it doesn’t discriminate in costs within a particular type of consumers irrespective of how much energy they consume.
3. Block rate tariff: Energy supplied in blocks with each block having a particular number of units of energy. The first few blocks are charged highest followed by the next…then the next and so on. This helps in maintaining a good load factor (avg. load/peak load) by providing the said incentive
4. 2 part tariff: Fixed+Running charges. Fixed -> Based on maximum demand in kW (charged on /kW basis) & Running -> Charges / unit energy consumed in kWhr. Maximum demand estimated on basis of rateable value (total connected load)
5. Maximum Demand Tarriff: Similar to 2 part tariff except that maximum demand is obtained from MDI installed at consumers premises. Normally used for big consumers only.
6. Power factor tariff:
(a) kVA tariff: Fixed charges are based on kVA instead of kW to include the pf component as kVA is inversely proportional to pf
(b) kW & kVAR tariff: Charged on the basis of kW & kVAR units consumed
(c) Average pf method: A reference pf is set. If pf> ref, discount is provided to consumer else he is penalised at a predetermined amount
7. 3 part tariff: Includes the 2 part tariff+ fixed charges made during each billing period to include labour charges, interest. Depreciation on the basis of secondary power distribution
