- 2080 Baisakh · 1+3 marks
Tariff types used in industry billing by NEA
Short answer
A tariff is the rate schedule and billing method for electricity consumers. NEA applies a two-part tariff (kVA demand charge plus kWh energy charge), rates by supply voltage (LV/MV/HV), a time-of-day tariff with peak, normal, off-peak periods, and seasonal rates plus power factor penalties.
Define Tariff. Explain different types of tariff used in Industry billing by Nepal Electricity Authority.
Tariff
A tariff is the schedule of rates and the method by which an electric utility charges consumers for the electrical energy and the demand they use. It should recover the cost of generation, transmission and distribution, give a fair return, and be simple and fair to consumers.
Types of tariff used in industrial billing by NEA
As per NEA's tariff schedule (rates are revised by the Electricity Regulatory Commission from time to time):
- Two-part tariff: a demand charge per kVA of contracted/maximum demand per month plus an energy charge per kWh used. Billing demand in kVA also makes low-pf consumers pay more.
- Voltage-level based rates: separate demand and energy rates for LV (230/400 V: rural, cottage and small industries), MV (11 kV and 33 kV: medium industries) and HV (66 kV and above: large industries). Higher supply voltage gets lower rates.
- Time-of-day (ToD) tariff: compulsory for MV/HV industrial consumers with ToD meters. Energy rates differ for peak (about 17:00–23:00), normal (05:00–17:00) and off-peak (23:00–05:00) periods.
- Seasonal tariff: ToD rates differ between the wet season (Baisakh–Mangsir) and the dry season (Poush–Chaitra) to match hydro availability.
- Power factor provisions and minimum charge: penalty for pf below the set limit and a minimum monthly charge on contracted demand.
| Type | Basis | Purpose |
|---|---|---|
| Two-part | kVA demand + kWh | Recover fixed and running cost |
| Voltage-level | LV/MV/HV supply | Reflect cost of service |
| ToD | Peak/normal/off-peak | Shift load from peak |
| Seasonal | Wet/dry season | Match hydro output |
✓ Answer checked by Claude Opus 5.5 (high effort)
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