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What all are included in the three-part tariff? i. Fixed charges ii. Running charges iii. Semi fixed charges

What all are included in the three-part tariff? i. Fixed charges ii. Running charges iii. Semi fixed charges Correct Answer i, ii and iii

Three Part Tariff: When the total charge to be made from the consumer is split into three parts, it is known as three-part tariff.

Three parts includes fixed charge, semi fixed charge and running charge

Total charge = Rs (a + b × kW + c × kWh)

a = fixed charge made during each billing period which includes interest and depreciation on the cost of secondary distribution and labor cost of collecting revenues

b = charge per kW of maximum demand

c = charge per kWh of energy consumed

By adding fixed charge to a two-part tariff, it becomes three-part tariff. It is generally applied to big consumers

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