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CONTENTS
1. Tarif
2. Desirable Characteristics
of a Tarif
3. Types of Tarif
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Introduction
The supply company has to ensure
that the tariff is such that
It recovers the total cost of
producing electrical energy
Also earns profit on the capital
investment
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Tarif
The rate at which electrical energy is
supplied to a consumer.
Objectives of tarif:
3. Simplicity :
. Reasonable profit
: electric supply company
An
generally enjoys the benefits of
monopoly.
Therefore, the investment is
relatively safe due to non-competition
in the market.
profit to be restricted to 8% or so
per annum.
Types of Tarif
The following are the commonly used types of tariff :
http://iesco.com.pk/index.php/custom
er-services/tariff-guide
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Disadvantages:
1. There is no discrimination between different
types of consumers since every consumer has to
pay fixed charges.
2. The cost per unit delivered is high.
3. It does not encourage the use of
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electricity.
4. Two-part tarif
When the rate of electrical energy is charged on the
basis of maximum demand of the consumer and the
units consumed
Total charge is split into two components
1. Fixed charges
2. Running charges
Fixed charges
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. Three-part tarif
When the total charge to be made from the
consumer is split into three parts viz., fixed
charge, semi-fixed charge and running charge
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[6] Ameren Illinois Power Rate Zone 1. Effective June 1, 2008 [Online]. Available:
https://www2.ameren.com/RetailEnergy/RealTimePrices.aspx.
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YOU
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