What is the flat rate tariff?

When different types of consumers are charged at different uniform per unit rates, it is said to be flat rate tariff.

• • In this type, the consumers are grouped into different classes.
  • Each class is charged at the different uniform rate.
  • The different classes of consumers may be taken into account of their diversity and load factors.
  • Since this type of tariff varies according to the way of supply used, separate meters are required for lighting load, power load etc.
  • This is probably the most popular tariff structure.
  • In flat rate tariff structure, various types of consumers are charged at different according to rate.
  • Flat rate for light loads like light, fan are charged a bit higher than loads with heavy consumption.
  • The rate at which each category of consumer is to be charged is decided by considering its load factor and power factors into account.

Total Energy Charged = Rs. N_U*R

Where,
N_U – Number of units (energy) consumed over a billing period.

R – Flat rate in rupees per Unit.