2) Straight Line Meter Rate. According to this energy rate the amount to be charged from the
consumer depends upon the energy consumed in kWh which is recorded by a means of a kilowatt hour
meter. It is expressed in the form
Y = EZ
This rate suffers from a drawback that a consumer using no energy will not pay any amount
although he has incurred some expense to the power station due to its readiness to serve him. Secondly
since the rate per kWh is fixed, this tariff does not encourage the consumer to use more power.
(3) Step Meter Rate. According to this tariff the charge for energy consumption goes down as
the energy consumption becomes more. This tariff is expressed as follows.
Y = EZ If 0 ≤ Z ≤ A
Y = E
Y = E
1
2
Z
Z
1
2
If A ≤ Z
If B ≤ Z
≤ C
And so on. Where E, E
1
, E
2
1
2
≤ B
are the energy rate per kWh and A, B and C, are the limits of energy
consumption.
(4) Block Rate Tariff. According to this tariff a certain price per units (kWh) is charged for all or
any part of block of each unit and for succeeding blocks of energy the corresponding unit charges
decrease.