Power Plant Engineering and Economy
Course Code: EEE-3231
What is tariff ……?
The rate at which electrical energy is supplied to a consumer
is known as tariff.
Objectives of tariff.
(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.
(iii) Recovery of cost of operation and maintenance of supply of electrical
energy e.g., metering
equipment, billing etc.
(iv) A suitable profit on the capital investment.
Desirable Characteristics of tariff.
(i) Proper return
(ii) Fairness
(iii) Simplicity
(iv) Reasonable profit
(v) Attractive
Types of tariff
1. Simple tariff
2. Flat rate tariff
3. Block rate tariff
4. Two-part tariff
5. Maximum demand tariff
6. Power factor tariff
7. Three-part tariff
1. Simple tariff
When there is a fixed rate per unit of energy consumed, it is called a
simple 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.
3. Block rate tariff
When a given block of energy is charged at a specified rate and the
succeeding blocks of energy are charged at progressively reduced
rates, it is called a block rate tariff.
4. Two-part tariff
When the rate of electrical energy is charged on the basis of
maximum demand of the consumer and the units consumed, it is
called a two-part tariff.
Example 5.1. A consumer has a maximum demand of 200 kW at 40%
load factor. If the tariff is Tk. 100 per kW of maximum demand plus
10 paise per kWh, find the overall cost per kWh.
Solution.
Units consumed/year = Maximum demand ×L.F. × Hours in a year
= 200 × 0·4 × 8760
= 700800 kWh
Annual charges = Annual Maximum demand charges + Annual energy charges
= 100 × 200 + 0·1 × 700800 Taka
= 90080 Taka
90080
Overall cost/kWh = Taka
700800
= 0·1285 Taka
= 12·85 paise
Ans
Example 5.2. The maximum demand of a consumer is 20 A at 220 V and his total
energy consumption is 8760 kWh. If the energy is charged at the rate of 20 paise per
unit for 500 hours use of the maximum demand per annum plus 10 paise per unit for
additional units, calculate : (i) annual bill (ii) equivalent flat rate.
Solution.
Assume the load factor and power factor to be unity.
220×20×1
Maximum demand = = 4.4 kw
1000
(i) Units consumed in 500 hrs = 4·4×500 = 2200 kWh
Charges for 2200 kWh = 0·2 ×220 = 440 Taka
Remaining units = 8760 - 2200 = 6560 kWh
Charges for 6560 kWh = 0·1×6560 = 656 Taka
Total annual bill = (440 + 656) = 1096 Taka
1096
(ii) Equivalent flat rate = 8760 Taka
=0.125 Taka
= 12.5 paise
Ans
Example 5.3. The following two tariffs are offered :
(a) Tk. 100 plus 15 paise per unit ;
(b) A flat rate of 30 paise per unit ;
At what consumption is first tariff economical ?
Solution.
Let x be the number of units at which charges due to both tariffs become equal. Then,
100 + 0·15x = 0·3x
=> 0·15x = 100
x = 100/0·15 = 666·67 units
Therefore, tariff (a) is economical if consumption is more than 666·67 units.
Thank You