What is tariff and factors on which tariff depend?

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Chetan Shidling Staff asked 5 years ago

I need short information.

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Chetan Shidling Staff answered 5 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.