Correct Answer - Option 3 : Doherty rate
Three-Part Tariff or Doherty Rate:
The three-part tariff is the most ideal tariff for the consumer
Three-Part Tariff: When the total charge to be made from the consumer is split into three parts, it is known as a three-part tariff.
Three parts include 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 labour cost of collecting revenues
b = charge per kW of maximum demand
c = charge per kWh of energy consumed
By adding the fixed charge to a two-part tariff, it becomes three-part tariff.
This type of tariff is usually applicable to
bulk supplies.
