5) Two Part Tariff (Hopkinson Demand Rate). In this tariff the total charges are based on the
maximum demand and energy consumed. It is expressed as
Y = D . X + EZ
A separate meter is required to record the maximum demand. This tariff is used for industrial
loads.
(6) Three-Part Tariff (Doherty Rate). According to this tariff the customer pays some fixed
amount in addition to the charges for maximum demand and energy consumed. The fixed amount to be
charged depends upon the occasional increase in fuel price, rise in wages of labour etc. It is expressed by
the expression