Why tariff is less for power load than lighting loads?

The tariff for power load is less as compared to lighting loads. This is because power load is much more than lighting load and therefore,improves the load factor of the system to a great extent.

Why are electricity tariffs different?

These, in turn, will depend upon the type of load and load conditions. Hence, the tariff is different for different type of loads (and hence different consumers). Therefore, while fixing the tariff, we have to consider various consumers (industrial, domestic, commercial, etc.) and their requirements.

What should be the basis of power tariff?

➢ The tariff should be simple so that an ordinary consumer can easily understand it. ➢ A complicated tariff may cause an opposition from the public which is generally distrustful of supply companies.

What is tariff in electrical power system?

Tariff refers to the amount of money the consumer has to pay for making the power available to them at their homes. Tariff system takes into account various factors to calculate the total cost of the electricity.

What is tariff What are the factors that affect tariff explain briefly flat rate tariff?

1. Flat demand rate tariff – The flat demand rate tariff is expressed by the equation C = Ax. In this type of tariff, the bill of the power consumption depends only on the maximum demand of the load. The generation of the bill is independent of the normal energy consumption.

What is tariff explain different types of tariff?

Definition: When there is a fixed rate per unit of energy consumed, it is known as simple tariff (Uniform Rate Tariff). This is the most simplest of all tariff. It is the tariff in which a consumer is charged for per unit used. In this type, the price charged per unit is constant.

What is tariff and different types of tariff?

It is the tariff in which different types of consumers are charged at different rates according to their consumption. The consumer has to pay two different rates for different loads (i.e. power and lighting loads) plus the rent of the meter to be installed in the consumer premises.

How is power tariff decided in India?

Electricity tariff is determined based on the provisions contained in (a) Electricity Act 2003 and (b) Tariff Policy notified by the Government of India. In case of central generating stations and where two or more states are involved, the Central Electricity Regulatory Commission determines the tariff.

What is tariff and types of tariff?

There are two basic types of tariffs imposed by governments on imported goods. First is the ad valorem tax which is a percentage of the value of the item. The second is a specific tariff which is a tax levied based on a set fee per number of items or by weight.

What is the importance of power factor tariff?

The tariff imposed on consumption of reactive power is power factor tariff. If reactive power consumption is low then the power factor is high and hence lower cost, if reactive power consumption is high the power factor is low hence higher cost.

What is the purpose of a tariff?

Tariffs have three primary functions: to serve as a source of revenue, to protect domestic industries, and to remedy trade distortions (punitive function). The revenue function comes from the fact that the income from tariffs provides governments with a source of funding.

Why are tariffs used?

Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers. If the domestic consumer still chooses the imported product then the tariff has essentially raised the cost for the domestic consumer.

What is power factor tariff?

Power factor tariff: The tariff in which the power factor of the consumer’s load is taken into consideration is known as the power factor tariff. In an a.c. the system, the power factor plays an important role. A low power factor increases the rating of station equipment and line losses.

What should be included in a tariff of electricity?

Like other commodities, electrical energy is also sold at such a rate so that it not only returns the cost but also earns reasonable profit. Therefore, a tariff should include the (i) Recovery of cost of producing electrical energy at the power station. (ii) Recovery of cost on the capital investment in transmission and distribution systems.

What do you mean by flat rate tariff?

2. Flat rate tariff. When different types of consumers are charged at different uniform per unit rates, it is called a flat rate tariff. ers is charged at a different uniform rate. For instance, the flat rate per kWh for lighting load may be 60 paise, whereas it may be slightly less† (say 55 paise per kWh) for power load.

What is maximum demand tariff?

The maximum demand of consumer is generally assessed on the basis of the rateable value of the premises or on the number of rooms or on the connected load. c = charge per kWh of energy consumed This type of tariff is mostly applicable to industrial consumers who have appreciable maximum demand. (i) It is easily understood by the consumers.