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What is tariff and factors on which tariff depend?

All Questions › Category: Transmission And Distribution System › What is tariff and factors on which tariff depend?
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CS Electrical And Electronics Staff asked 4 years ago

I need short information.

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CS Electrical And Electronics Staff answered 4 years ago

The rate at which electrical energy is supplied to a consumer is known as Tariff.
Factors on which tariff depends:

  1. Compensation of the cost of producing electrical energy at the power station.
  2. Return of cost on the capital investment in transmission and distribution systems.
  3. Return of cost of operation and maintenance of a supply of electrical energy e.g., metering equipment, billing, etc.
  4. A proper profit on the capital investment.