In tariff, the fixed charges are dependent on __________ and variable charges are dependent on __________, respectively.

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MPPGCL JE Electrical 28 April 2023 Shift 2 Official Paper
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  1. maximum demand, energy consumption
  2. energy consumption, energy losses
  3. average demand, peak load demand
  4. energy consumption, peak load

Answer (Detailed Solution Below)

Option 1 : maximum demand, energy consumption
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Electrical Tariff

A tariff is the method by which electricity supply companies charge consumers for the usage of electrical energy. It includes various components such as fixed charges, energy charges, and sometimes additional charges based on peak demand or penalties.

In tariff schemes, fixed charges depend on maximum demand, while variable charges depend on energy (units) consumed. 

A tariff generally consists of two main types of charges:

Fixed Charges:

  • These are independent of energy consumption and are based on the maximum demand of a consumer.
  • Covers infrastructure, maintenance, and administrative costs.
  • Example: ₹200 per kW of connected load per month.


Variable Charges:

  • Based on the actual energy consumption in kilowatt-hours (kWh).
  • Covers fuel costs, operational expenses, and generation costs.
  • Example: ₹5 per kWh.
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