What is tariff?

1 Answer

Answer :

The rate at which electrical energy is supplied to a consumer is known as tariff.
The tariff should include the following items:
(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
(iv) A suitable profit on the capital investment.

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