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