Various categories of electricity rates

Various categories of electricity rates

In the present day, the interlinked power system supply electricity to various consumers. The rate of electricity which is supplied to the customers is known to be a tariff. The tariff is covering the cost of production and supply of the electric energy at a reasonable cost. Depending on the power consumption the customers want to pay the tariff rates. According to the requirements of the consumer, the bill of the consumer get varies. Domestic users use a small amount of electricity than industrial consumers. So the industrial consumer wants to pay more tariffs than domestic consumers because of the long term usage of electricity. So the Electricity Rates focus on the consumption of electrical usage. The types of loads are based on commercial, domestic and industrial needs of power consumption. The maximum demands of the electrical usage vary according to the consumer. The cost of production, supply, transmission, and then the salaries of the employees are based on the framed tariff for the usage of electricity. The generation of electricity depends on the maximum demands of electrical usage.

Electricity Rates

Simple tariff of electricity usage:

In the simple tariff, the fixed tariff is applied for power consumption. The simple tariff is known to be the uniform tariff. The constant rate is fixed for energy consumption. The quantity doesn’t determine the rate of the unit energy. The price of electric energy is constant. The energy meter is used to record the energy consumption of the customers. It is known to be the simplest method of monitoring electric usage. A simple tariff is easily understandable and the easily applicable content of the electric usage. The consumer wants to pay the simple tariff according to the use of electricity consumption. In the simple tariff, there should not be any discrimination over the various types of consumers. The high cost is offered for a single unit. According to the use of electricity, the tariff is allotted to the consumers. If the customer didn’t use any of the single units for a particular time then no tariff will be charged from the customers. Even there is no charges are applied for the customers for the providence of connection.

Flat rate tariff of electricity usage:

In the flat-rate tariff, there are various types of consumers charged on various levels according to the use of electricity consumption. Various types of consumers are categorized in the flat tariff electricity usage. Different categories of customers are charged with different fixed rates which are similar to the simple tariff. According to loads of the customers, the rates are fixed to the customers. The flat-rate tariff is much fare to the various customers of power consumption. A very simple calculation is present in the flat tariff. According to the consumption of the power the consumers are charged with the flat tariffs at a particular rate. According to a load of power consumption, the different meters are installed in the calculation of electric usage. Installation of different meters makes the complication in the whole arrangements and the expenses are more. The same rate is charged for a particular category of customers who utilize more energy also charged with fixed lower rates.