Types of Tariff in Electricity | New Topic [2024]

In this note, we are going to learn about Types of Tariff in Electricity or Different types of Tariff. Welcome to Poly Notes Hub, a leading destination for engineering notes for diploma and degree engineering students.

Author Name: Arun Paul.

Types of Tariff in Electricity

There are six types of tariff in electricity โ€“

  1. Time of Day Tariff: Time-of-Day (ToD) tariffs charge different rates for power use at various periods of the day. Typically, electricity costs more during peak demand and less during off-peak periods. This sort of pricing encourages customers to shift their usage to off-peak hours, lessening the load on the power grid during peak hours.
  2. Peak Off Peak Tariff: The Peak-Off-Peak tariff, like the Time-of-Day tariff, distinguishes between peak and off-peak periods, however in a more simplified manner. The day is divided into two parts: peak hours, when power demand and prices are highest, and off-peak hours, when demand and prices are lowest. This helps to balance the load on the electrical grid.
  3. Power Factor Tariff: The Power Factor Tariff is intended to encourage customers to maintain a high power factor. The power factor is the ratio of real power (used for labor) to perceived power (total power supplied). Poor power factor can lead to inefficient electricity usage and increased grid demand. Consumers with a low power factor may face a penalty, whilst those with a high power factor may earn a discount.
  4. Maximum Demand Tariff: The Maximum Demand tariff is based on the highest level of power demand (measured in kilowatts or kVA) recorded over a certain time period. Consumers are charged according to their peak usage. This sort of tariff is frequently imposed on industrial and commercial users to encourage them to control and reduce their peak usage.
  5. Load Factor Tariff: The Load Factor tariff accounts for the consistency of electricity usage throughout time. Load factor is computed as the ratio of average to maximum load for a given time period. A higher load factor suggests more consistent usage, which benefits the electrical provider. Consumers having a high load factor may be offered a discounted rate as an incentive.
  6. Special Tariff: Special tariffs might be tailored to the demands of specific consumer groups or to advance specific governmental goals. There are different types of special tariff, like
    • Seasonal Tariff
    • Social Tariss
    • Promotional Tariff
Share To:

Leave a Reply

Your email address will not be published. Required fields are marked *