0% found this document useful (0 votes)
99 views31 pages

07EEE - 2023 - Tariff Structure

The document provides an overview of different types of tariff structures or energy rates for electrical power systems. It discusses simple tariffs which charge a fixed rate per unit of energy consumed. Flat rate tariffs group consumers into classes and charge different uniform rates to each class. Block rate tariffs charge consumers at progressively lower rates for increased blocks of energy consumption. Two-part tariffs split the total charge into a fixed component based on maximum demand and a running component based on energy consumed. Three-part tariffs further split the fixed component into separate fixed and semi-fixed charges. Power factor tariffs charge consumers with low power factor loads higher rates.

Uploaded by

Ambadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
99 views31 pages

07EEE - 2023 - Tariff Structure

The document provides an overview of different types of tariff structures or energy rates for electrical power systems. It discusses simple tariffs which charge a fixed rate per unit of energy consumed. Flat rate tariffs group consumers into classes and charge different uniform rates to each class. Block rate tariffs charge consumers at progressively lower rates for increased blocks of energy consumption. Two-part tariffs split the total charge into a fixed component based on maximum demand and a running component based on energy consumed. Three-part tariffs further split the fixed component into separate fixed and semi-fixed charges. Power factor tariffs charge consumers with low power factor loads higher rates.

Uploaded by

Ambadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 31

Electrical Energy Systems I

Dr. Preetha PK, Amrita ViswaVidyapeetham


Course Syllabus
 Unit 1
Introduction-Structure of Electric Power System-Conventional, Deregulated Structure, Grid Structure Micro-grid and Smart Grid Structure;
Methods of electric power generations – Conventional- Renewable Energy based generation, need for interconnected system- necessity of
EHV transmission: EHVAC and HVDC transmission, Variable load on power system- Load Curve and Load Duration Curve, Tariff-Types,
Power factor improvement.
 Unit 2
Introduction to Modeling and performance analysis, Transmission line Models- Line parameter estimation- symmetrical and unsymmetrical
spacing of lines, bundled conductor, double circuit lines- corona- Regulation, Efficiency, Real and reactive power flow in transmission lines-
Harmonics- Effects in power system, THD. Compensation- shunt and series compensation.
 Unit 3
Insulators and Underground cables -classification and grading. Mechanical design of transmission lines. Distribution systems –Types and
comparison–Ring main- Radial distribution. Representation of power system: Power system components model, Single line diagram and per
unit representation, reactance/impedance diagram, Bus Admittance and Impedance matrix.
 Lab Practice: Hardware experiments, simulation experiments and field visit – Structure of Electric Power System, modeling and
performance analysis of transmission and distribution systems, power system representation etc.
Unit 1

Power System Conventional EHVAC/HVDC


Deregulated
Structure Systems

Power
Renewable
Generation Conventional
Energy Based
Methods

Load on Power Load Curves Tariff Structure


Power factor
System Load factors Improvement
Tariff Structure/ Energy Rate

Dr. Preetha PK, Amrita ViswaVidyapeetham


5 Tariff (Energy Rate)

Tariff must include

Recovery of cost of capital investment in generation,


transmission and distribution

Recovery of cost of operation and maintenance

Suitable profit on capital investment

Incentives and penalty wherever applicable 19-04-2023


6
Tariff Types

Simple Power
Flat rate Block Two-part Three-
tariff factor
tariff rate tariff tariff part tariff
tariff

kVA kW and
maximum Sliding
scale kVAR
demand tariff
tariff tariff

19-04-2023
Simple tariff
7

 When there is a fixed rate per unit of


energy consumed, it is called a simple
tariff or uniform rate tariff.

 In this type of tariff, the price charged


per unit is constant.

 The rate per unit of energy does not


depend upon the quantity of energy
used by a consumer.

 Energy consumption by the consumer


19-04-2023
is recorded by the energy meters.
Simple tariff
8
Advantages:
 Simplest method
 Easily understandable and easy to apply
 Each consumer has to pay according to his utilization

Disadvantages
 There is no discrimination between different types of consumers since
every consumer has to pay equitably for the fixed charges.
 The cost per unit is high.
 There are no incentives (an attractive feature that makes the consumers
use more electricity.)
 If a consumer does not consume any energy in a particular month, the
supplier cannot charge any money even though the connection provided
to the consumer has its own costs. 19-04-2023
Flat rate tariff
9

 When different types of consumers are charged at


different uniform per unit rates, it is called a flat
rate tariff.
 In this type of tariff, the consumers are grouped
into different classes and each class of consumers
is charged at a different fixed rate similar to
Simple Tariff.
 For instance, the flat rate per kWh for lighting
load may be 60 paise, whereas it may be slightly
less (say 55 paise per kWh) for power load.
 The different classes of consumers are made
taking into account their diversity and load
19-04-2023
factors.
Flat rate tariff
10
Advantages
 More fair to different consumers.
 Simple calculations.

Disadvantages
 Separate meters are required for lighting load, power load etc. This makes the
application of such a tariff expensive and complicated.

 All the consumers in a particular “category” are charged at the same rate
irrespective of the magnitude of energy consumed. However, it is fairer if the
consumers that utilize more energy be charged at lower fixed rates.

 If a consumer does not consume any energy in a particular month, the supplier
cannot charge any money even though the connection provided to the consumer
has its own costs.
19-04-2023
Block rate tariff
11
 A given block of energy is charged at a
specified rate and the succeeding blocks of
energy are charged at progressively reduced
rates.
 the energy consumption is divided into blocks
and the price per unit is fixed in each block.
 For example, the first 30 units may be charged
at the rate of 60 paise per unit, the next 25
units at the rate of 55 paise per unit and the
remaining additional units may be charged at
19-04-2023
the rate of 30 paise per unit.
12 Block rate tariff
Advantage
 the consumer gets an incentive to consume more electrical energy
 This increases the load factor of the system and hence the cost of
generation is reduced.

Disadvantage
 It lacks a measure of the consumer’s maximum demand (applicable for
previous tariffs also).
 If a consumer does not consume any energy in a particular month, the
supplier does not charge any money even though the connection provided
to the consumer has its own costs.
19-04-2023
13 Two-part tariff
 In two-part tariff, the total charge to be made from the consumer
is split into two components

fixed charges depending upon the maximum demand of the


consumer
running charges depending upon the number of units
consumed by the consumer.

 Thus, the consumer is charged at a certain amount per kW of


maximum demand plus a certain amount per kWh of energy
consumed
19-04-2023
14
Two-part tariff

Total Cost = [A*(Max. demand in kW) + B *(kWh)]

A = charge per kW of max demand


A is a constant which when multiplied with max demand (kW) gives
the total fixed costs.

B = charge per kWh of energy consumed


B is a constant which when multiplied with units consumed (kWh),
gives total running charges.

19-04-2023
15 Two-part tariff
Advantages
 If a consumer does not consume any energy in a particular month,
the supplier will get the return equal to the fixed charges.

Disadvantages
 Even if a consumer does not use any electricity, he has to pay the
fixed charges regularly.
 The maximum demand of the consumer is not determined. Hence,
there is error of assessment of max demand and hence conflict
between the supplier and the consumer. Else maximum demand
meter at the consumer premise need to be there
19-04-2023
16 Three-part tariff
Total cost is divided into 3 sections:

Total Charges = [A + B (kW) + C (kWh)]

A = fixed charges
B = charge per kW of max demand
B is a constant which when multiplied with max demand (kW)
gives the semi fixed costs.
C = charge per kWh of energy consumed
C is a constant which when multiplied with units consumed (kWh),
gives total running charges. 19-04-2023
17
Power Factor Tariff

Consumers having low power factor loads will be charged more.

It can be further divided into the following types:


(I) kVA Maximum Demand Tariff

(II) kW And kVAR Tariff

(III) Sliding Scale Tariff

19-04-2023
18 (1) kVA Maximum demand tariff
 In this type of tariff, the fixed charges are made on the basis of maximum
demand in kVA instead of kW.
power factor = kW / kVA

 pf is inversely proportional to kVA demand.

 Hence, a consumer having low power factor load will have to pay more
fixed charges.

 This gives the incentive to the consumers to operate their load at high
power factor. 19-04-2023
19 (II) kW And kVAR tariff

 In this tariff scheme, the active power (kW) consumption and


the reactive power (kVAR) consumption is measured separately.

 Of course, a consumer having low power factor load will have to


pay more fixed charges.

19-04-2023
20
(III) Sliding scale tariff

 In this type of tariff scheme, an average power factor (generally 0.8


lagging) is taken as reference.

 if the power factor of the consumer’s loads is lower than the reference, he
is penalized accordingly.

 Hence, a consumer having low power factor load will have to pay more
fixed charges.

 Also, if the pf of the consumer’s load is greater than the reference, he is


awarded with a discount. This gives incentives to the consumers. It is
19-04-2023
usually applied to large industrial consumers.
21 Availability Based Tariff (ABT)

 There are two tariff systems, one which the consumer pays to the
DISCOMS (eg. All previously discussed tariff structurs) and the
other one which the DISCOMS pay to the generating stations.

 ABT is the tariff system existent in India for the DISCOMS and
was introduced in the year of 2002. Central Electricity
Regulatory Commission (CERC) regulates this.
22
Availability Based Tariff (ABT)

 As its name suggests, it is a tariff system which depends on the


availability of power. It is a frequency based tariff mechanism
which tends to make the power system more stable and reliable.

 Availability Based Tariff (ABT) is a frequency based pricing


scheme adopted in Indian Power Sector to maintain Grid
discipline by implementing incentive/penalty during unscheduled
power interchange (UI).
Need of Availability Based Tariff

 Power supply and demand mismatch in power sector leads to variations


in system frequency from its nominal value (50 Hz)

 If power demand is more than the power supply then the Grid
frequency will be less than 50 Hz. If demand is less than generation, then
grid frequency will be more than 50 Hz

 Before the introduction of Availability Based Tariff, Generating Stations


used to deliver the same amount of MW even if the MW demand is less.
This causes the Grid frequency to be at higher side.
Need of Availability Based Tariff

 Similarly during the period of higher power demand, Generating Stations


used to supply same MW. Subsequently, the Grid frequency reduces. This
type of Grid operation did not have any provision to maintain discipline.

 During peak load hours, Generating Stations should supply more power to
meet the demand and during off peak hours, Generating Stations should
reduce their generation to maintain the supply-demand balance, thereby
maintaining grid frequency at 50 Hz.

 But the existing tariff scheme does not encourage Generating Stations to
back down their generation during off-load hours since as per the existing
tariff scheme Generating Stations get paid for the power supplied.
Need of Availability Based Tariff
 This necessitates a new pricing scheme which encourages Generating
Stations to reduce generation during off load hours by providing incentive.

 Similarly, this scheme should also provide incentive to Stations to supply


more power during low frequency Grid condition and penalize beneficiary
for drawing power more than the schedule power during low frequency
Grid condition.

 This is why Availability Based Tariff (ABT) was introduced. Thus the new
pricing scheme helps to maintain the Grid discipline and stability.
26 Availability Based Tariff

• Fixed Cost
Capacity • Linked to Plants Capacity to supply MWs
• Depends on the Availability of the Plant
Charge

• Variable cost
Energy • Fuel cost for Scheduled Generation
• Operating Expenses
Charge

• UI- Unscheduled Interchange


UI • Payment for Deviations from Schedule at a rate dependent on
system conditions
Charge
19-04-2023
Capacity Charge
27
 This is a fixed cost which is directly proportional to the plant capacity
shared by the beneficiaries.
 The reimbursed Fixed Charges payable to Generating Station is dependent
on the availability of plant.
 If the plant availability for a year is more than the set norm, the
generating station gets paid higher.
 In case the plant availability is less than the set norm over a year, the
generating station is going to be paid lower. This is why this tariff is called
Availability Based Tariff.
 In earlier tariff, fixed charge was dependent on Plant Load Factor but in
Availability Based Tariff, it is linked with Plant Availability 19-04-2023
28
Energy Charge

 This is a variable cost and is the cost incurred by Generating


Station to produce MW day to day.

 It comprises of Fuel charge (like coal for thermal power plant,


Nuclear Fuel Bundle for Nuclear Power Plant, Gas for Gas Power
Plant etc.), Operating expenses etc.

19-04-2023
29 UI Charge

 Unscheduled Interchange means deviation from the scheduled


generation of plant or scheduled power exchange

 Suppose a generating station is scheduled to deliver 600 MW but


actually on a day it is supplying 700 MW..
Then the station will be paid Energy Charges for scheduled
generation i.e. for 600 MW.
For surplus 100 MW, the rate of energy charge will depend upon
the prevailing Grid frequency at the time.
This energy charge for surplus supply i.e. 100 MW (for this
example) is called Unscheduled Interchange Charge (UI Charge).
19-04-2023
30 UI Charge

 The UI charge is linked with Grid frequency.

 If the Grid frequency is higher (more than 50.5 Hz), it indicates


that the grid has surplus power, the rate of UI charge is zero.

 This means Generating Station will not be paid for excess


generation of 100 MW when Grid frequency is more than 50.5
Hz.

 Thus the station is forced to reduce its generation to maintain


Grid frequency. 19-04-2023
31
UI Charge
 Similarly when the Grid frequency is lower, there is power deficit in
the grid and the the generating station is paid incentive for excess
generation at UI rate.

 This encourages to supply excess power into the Grid by the stations
so that Grid frequency do not decrease further.

 Let us say the Grid frequency at that time is 49.4 Hz. In this case, a
UI charge at a higher rate is paid to the station.

19-04-2023

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy