Correct Answer - Option 1 : Two meters
Two-Part Tariff (Hopkinson Demand Rate):
- When the rate of electrical energy is charged on the basis of maximum demand of the consumer and the units consumed, it is called a two-part tariff or Hopkinson Demand Rate.
- In a two-part tariff, the total charge to be made from the consumer is split into two components that are fixed charges and running charges.
- The fixed charges depend upon the maximum demand of the consumer while the running charges depend upon the number of units consumed by the consumer.
- This type of tariff is mostly applicable to industrial consumers who have appreciable maximum demand.
- Thus, the consumer is charged at a certain amount per kW of maximum demand plus a certain amount per kWh of energy consumed i.e.,
Total Charge = Rs (b × kW + c × kWh)
Where b is a charge per kW of Maximum demand and c is charged per kWh of energy consumed
Advantages:
- It is easily understood by the consumers.
- It recovers the fixed charges which depend upon the maximum demand of the consumer but are independent of the units consumed.
Disadvantages:
- The consumer has to pay the fixed charges irrespective of the fact whether he has consumed or not consumed the electrical energy.
- Two separate meters are required to record the maximum demand and energy consumed.
- There is always an error in assessing the maximum demand of the consumer.