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What is a simple tariff?
A simple tariff charges a fixed rate per unit of electricity consumed, regardless of usage amount or time.
What is a two-part tariff?
A two-part tariff includes a fixed charge for infrastructure and a variable charge based on actual energy usage.
Why are maximum demand tariffs used?
Maximum demand tariffs charge based on the peak demand and total energy consumed, encouraging load management.
What is the purpose of power factor tariffs?
Power factor tariffs include penalties or incentives to encourage consumers to maintain a high power factor, reducing losses.
What are the benefits of a three-part tariff?
Three-part tariffs comprehensively cover fixed, demand-based, and consumption-based charges, providing balanced cost recovery.