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Block rate tariff, where energy charge decreases with the increase in energy consumption
  • a)
    Encourages consumers for more consumption
  • b)
    Discourages consumers for more consumption
  • c)
    Encourages consumers to restrict their demand
  • d)
    Encourages consumers to improve the power factor
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Block rate tariff, where energy charge decreases with the increase in ...
Block Rate Tariff: When a block of energy is charged at a specified rate and the succeeding blocks of energy are charged at progressively reduced rates, it is called as block rate tariff.
  • The energy consumption is divided into blocks and the price per unit is fixed in each block
  • The price per unit in the first block is the highest and it is progressively reduced for the succeeding blocks of energy
  • The consumer gets an incentive to consume more electrical energy
  • This increases the load factor and hence the cost of generation is reduced
  • It is being used for the majority of residential and small commercial consumers
Disadvantages:
  • It lacks a measure of the consumer demand
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Most Upvoted Answer
Block rate tariff, where energy charge decreases with the increase in ...
Explanation:

Block rate tariff is a pricing system where the energy charge decreases with the increase in energy consumption. This means that the more electricity a consumer uses, the less they pay per unit of energy consumed. The following are the effects of block rate tariff:

Encourages consumers for more consumption:
The block rate tariff encourages consumers to consume more electricity because the more they consume, the less they pay per unit. This encourages consumers to use more electricity, which can lead to increased energy usage.

Discourages consumers for more consumption:
Block rate tariff does not discourage consumers from consuming more electricity because it reduces the energy charge for more consumption. Therefore, consumers are always encouraged to consume more electricity.

Encourages consumers to restrict their demand:
Block rate tariff does not encourage consumers to restrict their demand because it reduces the energy charge for more consumption. Therefore, consumers are encouraged to consume more electricity.

Encourages consumers to improve the power factor:
Block rate tariff does not encourage consumers to improve the power factor because it reduces the energy charge for more consumption. Therefore, consumers are encouraged to consume more electricity, regardless of their power factor.

Conclusion:
The block rate tariff encourages consumers to consume more electricity because it reduces the energy charge for more consumption. Therefore, consumers are always encouraged to consume more electricity.
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Block rate tariff, where energy charge decreases with the increase in energy consumptiona)Encourages consumers for more consumptionb)Discourages consumers for more consumptionc)Encourages consumers to restrict their demandd)Encourages consumers to improve the power factorCorrect answer is option 'A'. Can you explain this answer?
Question Description
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