Types of tariffs: i) Simple tariff ii) Flat rate tariff iii) Block rate tariff iv) Two part tariff v) Three part tariff vi) Maximum demand tariff vii) Power factor tariff
Simple Tariff: In this type of tariff, rate per unit is fixed. The rates will not vary with type of consumers, so it is very simple tariff to understand for consumers.
Flat rate Tariff: In this type of tariff different types of consumers are charged at different rates i.e. the flat rate for light and fan load is less than that for power load.
Block rate Tariff: In block rate tariff, the first block of energy (say first 100 units) is charged at lower rates and succeeding blocks of energy (i.e 101 to 300 units, 301 to 500 units etc.) are charged at progressively higher rates.
Two Part Tariff: The total charge to be made to the consumer is split in to two components mainly Fixed charge and running charge. Total Energy charge= a x kW + b x kWh, where a= charge per kW of maximum demand and b = Charge per kWh or unit of energy consumed.