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Tariff is defined as the rate at which ______ is supplied to a consumer.
1. power
2. current
3. energy
4. voltage

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Correct Answer - Option 3 : energy

Tariff: The rate at which electrical energy supplied to a consumer is known as tariff.

Objectives of Tariff:

  • Recovery of cost of producing electrical energy at the power station
  • Recovery of cost on the capital investment in transmission and distribution systems
  • Recovery of cost of operation and maintenance of supply of electrical energy
  • A suitable profit on the capital investment

 

Desirable Characteristics of Tariff:

  • Proper return
  • Fairness
  • Simplicity
  • Reasonable profit
  • Attractive

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