1. The monthly bill for a consumer with a maximum demand of 50 kW, energy consumed of 36,000 kWh and reactive energy of 23,400 kVArh is calculated based on a tariff of Rs. 80/kW of maximum demand plus Rs. 8/kWh plus Rs. 0.5/kWh for every 1% pf is below 86%.
2. For a consumer with a maximum demand of 100 kW, pf of 0.8 lagging, and load factor of 60%, the annual bill under a tariff of Rs. 75/kVA of maximum demand plus Rs. 0.15/
1. The monthly bill for a consumer with a maximum demand of 50 kW, energy consumed of 36,000 kWh and reactive energy of 23,400 kVArh is calculated based on a tariff of Rs. 80/kW of maximum demand plus Rs. 8/kWh plus Rs. 0.5/kWh for every 1% pf is below 86%.
2. For a consumer with a maximum demand of 100 kW, pf of 0.8 lagging, and load factor of 60%, the annual bill under a tariff of Rs. 75/kVA of maximum demand plus Rs. 0.15/
1. The monthly bill for a consumer with a maximum demand of 50 kW, energy consumed of 36,000 kWh and reactive energy of 23,400 kVArh is calculated based on a tariff of Rs. 80/kW of maximum demand plus Rs. 8/kWh plus Rs. 0.5/kWh for every 1% pf is below 86%.
2. For a consumer with a maximum demand of 100 kW, pf of 0.8 lagging, and load factor of 60%, the annual bill under a tariff of Rs. 75/kVA of maximum demand plus Rs. 0.15/
1. The monthly bill for a consumer with a maximum demand of 50 kW, energy consumed of 36,000 kWh and reactive energy of 23,400 kVArh is calculated based on a tariff of Rs. 80/kW of maximum demand plus Rs. 8/kWh plus Rs. 0.5/kWh for every 1% pf is below 86%.
2. For a consumer with a maximum demand of 100 kW, pf of 0.8 lagging, and load factor of 60%, the annual bill under a tariff of Rs. 75/kVA of maximum demand plus Rs. 0.15/
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
You are on page 1of 22
TARIFF
Tariff : Rate at which electrical energy is supplied to a consumer
TYPES OF TARIFF:
1. SIMPLE TYPE OF TARIFF
= Annual fixed charges+ Annual running charges Total no of units supplied to the consumers annually
Fixed rate per unit of energy consumed
No distinction between bulk consumers and domestic consumers Cost per unit calculated will be more 2. FLAT RATE TARIFF
Different types of consumers are charged at different rates
Consumers are grouped into residential, commercial etc. Rates for each type of consumer is arrived at by taking into account its load factor and diversity factor
Fig: Flat demand rate
z- Total cost y- Energy consumed 2. Straight meter rate:
Simplest form of tariff
Charge per unit is constant Charge depend on energy used Commonly used for residential and commercial consumer Does not encourage the use of electricity 3. BLOCK RATE TARIFF
A given block of energy is charged at a specified rate and the
succeeding blocks of energy are charged at progressively reduced rates. Provides an incentive to consume more electrical energy Increases the load factor of the system Cost of generation per unit is reduced
Fig: Block meter rate
z- Total cost y- Energy consumed 4. TWO PART TARIFF (Hopkinson demand rate)
Rate of energy is charged on the basis of maximum demand of
the consumer and the units consumed.
Total charge= Fixed charge + Running charge
Fixed charge based on maximum demand Running charge based on units consumed
Total charge= Rs (a*kW + b*kWh)
a : Charge per kW of maximum demand b : Charge per kWh of energy consumed
Maximum demand is taken as the connected load
If the consumer uses electricity sparingly or if he is out of station, unnecessarily he has to pay the fixed charge Fig: Two part tariff z- Total cost y- Energy consumed
5. MAXIMUM DEMAND TARIFF
Similar to two part tariff; but the maximum demand of the
consumer is measured by a ‘Maximum Demand Meter’ installed at the premises of the consumer 6. POWER FACTOR TARIFFS
Power factor of the consumer’s load is considered.
I = P/ (V cosΦ) Consumer having low power factor is penalized
a) kVA Maximum Demand Tariff
• Modified form of two part tariff • Fixed charges based on maximum demand in kVA and not in kW • Lower the pf, greater will the contribution towards the fixed charge. • Encourages the consumer to operate their appliances at improved power factor b) Sliding Scale Tariff or Average Power Factor Tariff
• An average power factor, say 0.8 is taken as reference
• Additional charges on lower pf • Discount on higher pf
c) kWh and kVARh Tariff
• Both active and reactive power demands are charged
separately • Lower the pf, more the reactive power 7. THREE PART TARIFF (Doherty rate)
Total charge= Rs ( a + b*kW + c* kWh)
a: Fixed charge made during each billing. It includes interest and depreciation on the cost of secondary distribution and labour cost of collecting revenue as well as meter rent b : Charge per kW of maximum demand c : Charge per kWh of energy consumed
Fig: Three part tariff
z- Total cost y- Energy consumed 8. TIME-OF-DAY (T.O.D)
Charges extra for electricity during periods of high
demand and offers a discount rate during off-peak hrs. The incentive encourages the consumer to use loads during off-peak, lower rate periods, with the reward of lower monthly electricity bill. Cost Analysis 1. Capital Cost or Fixed Cost • Initial Cost Factors affecting cost of generating units Location of plant Time of construction Size of units Number of generating units • Interest • Depreciation Straight line method Percentage method Sinking fund method Unit method 2. Operational Cost Cost of fuels Labour cost Cost for maintenance and repair Supervision Depreciation i. Straight line method • Simplest and commonly used method • Life of equipment or enterprise is assessed first and residual or salvage value is also estimated life • Rate of depreciation is uniform throughout the life of the equipment
• Depreciation Formula for the Straight Line Method:
• Example: Consider a piece of equipment that costs $25,000 with an estimated useful life of 8 years and a $0 salvage value. The depreciation expense per year for this equipment would be as follows:
• Depreciation Expense = ($25,000 – $0) / 8 = $3,125 per year
Double Declining Balance Depreciation Method • Results in larger expense in the earlier years as opposed to the later years of an asset’s useful • Assets are more productive in its early years than in its later years • Double-declining-balance method, the depreciation factor is 2x that of a straight line expense method • Depreciation formula for the double declining balance method:
Periodic Depreciation Expense = Beginning book value x Rate of
depreciation Example: Consider a piece of equipment that costs $250,000 with an estimated useful life of 8 years and a $2,500 salvage value. To calculate the double declining balance depreciation, set up a schedule: Units of Production Depreciation Method • Depreciates assets based on the total number of hours used or the total number of units to be produced over its useful life
• Depreciation formula for the Units of Production depreciation
method: Depreciation Expense = (Number of units produced / Life in number of units) x (Cost – Salvage value)
Example: Consider a machine that costs $25,000 with an estimated total
unit production of 100 million and a $0 salvage value. During the first quarter of activity, the machine produced 4 million units.
Depreciation Expense = (4 million / 100 million) x ($25,000 – $0) =
$1,000 Sum-of-the-Years-Digits Depreciation Method A higher expense is incurred in the early years while lower expense is incurred in the latter years of the asset • Depreciation formula for the sum-of-the-years-digits method:
Depreciation Expense = (Remaining life / Sum of the years digits)
x (Cost – Salvage value) Example: Consider a piece of equipment that costs $25,000 with an estimated useful life of 8 years and a $0 salvage value. To calculate the sum-of-the-years-digits depreciation method, set up a schedule:
Depreciation Base = Cost – Salvage value
Depreciation Base = $25,000 – $0 = $25,000
Summary of Depreciation Methods • Below is the summary of all four depreciation methods from the examples above.
• Summary Table of Depreciation by Method
1. The monthly readings of a consumer’s meter are as follows: Maximum demand = 50 kW, Energy consumed = 36,000 kWh, Reactive energy = 23,400 kVArh. If the tariff is Rs.80/kW of maximum demand plus 8ps per unit plus 0.5 ps per unit for each 1 % of pf below 86%, calculate the monthly bill of the consumers.
2 Calculate annual bill of a consumer whose maximum
demand is 100 kW, pf = 0.8 lagging and load factor = 60%. The tariff used is Rs.75 per kVA of maximum demand plus 15 paise per kWh consumed.