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TARIFF STRUCTURE IN INDIA

WHAT IS TARIFF IN ELECTRICITY?
THE RATE AT WHICH ELECTRICITY IS SOLD IS KNOWN AS TARIFF
TARIFF STRUCTURE IN INDIA
ENERGY CONSUMED BY A TV

ENERGY CONSUMED BY A TELEVISION
Suppose A man is running the television for 4 hours a day, and you are worried about the bill calculating the number of units he consumed in a month?

POWER RATING OF A TV IS 75 Watts,
Electricity consumed in one day = 75 * 4 = 300 watt hours
Electricity consumed in one month= 300*30=9000 watt hours
Divide by 1000 to convert watts to kilowatts = 9 kWh or 9 units
Say cost of electricity per unit is 7Rs/- then cost of electricity is 63Rs/-.

OBJECTIVES OF TARIFF:
1.The main objective of the tariff is to ensure the recovery of
the total cost of generation, transmission and distribution.
2.Recovery of cost of operation, supplies and maintenance of equipment.
3.Recovery of cost of metering equipment, billing and
miscellaneous services.
4.A marginal return (Profit) on the capital investment

MAIN FACTORS INVOLVED IN FIXING A TARIFF:
1.The tariff should be simple, cheap and capable of easy
explanation to consumers.
2.The tariff should be attractive so that consumers are
encouraged to make more extended use of electrical
energy.

TYPES OF TARIFF:
There are various types of consumers (domestic, commercial and industrial etc.) and their energy requirements are also different. Accordingly, several types of tariffs have been designed so far, out of which the most commonly applied are described below:
1. SIMPLE TARIFF
2. FLAT RATE TARIFF
3. BLOCK RATE TARIFF

SIMPLE TARIFF:
The tariff, in which the rate per unit of energy is fixed, is called simple tariff.This is a simplest possible tariff. The rate per unit of energy consumed by the consumer is fixed irrespective to the quantity of energy consumed by a consumer. This energy consumed is measured by installing an energy meter.
ADVANTAGES:
1.It is in simplest form and easily understood by the consumers.
2. Consumer is to pay as per his consumption.
DISADVANTAGES:
1.The cost of energy per unit delivered is high

FLAT RATE TARIFF:
The tariff in which different types of consumers are charged at different per unit rates is called flat rate tariff.This type of tariff is similar to simple tariff. Only difference is that consumers are grouped into different classes and each class of consumer is charged at a different per unit rates
ADVANTAGES
1. It is fairer to different types of consumers.
2. It is quite simple in calculations.
DISADVANTAGES
1.Separate meters are required to measured energy consumed for light loads and power loads.

BLOCK RATE TARIFF
The tariff in which first block of energy is charged at a given rate and the succeeding blocks of energy are charged at progressively Increased rates is called block rate tariff.In this type of tariff, the energy units are divided into numbers of blocks and the rate per unit of energy is fixed for each block. The rate per unit of energy for the first block is the Lowest and  increases progressively with the succeeding blocks. For example, the first 100 units may be charged at the rate of Rs. 3.00 per unit; the next 100 units may  be charged at the rate of Rs.3.50 per unit and the remaining additional units may charged at the rate of Rs. 4.00 per unit