Question

when industrial areas are charged more electricity charges as compared to residential areas it is called as?​

Answer 1

The energy charge for small domestic category having consumption of up to 50 units per month

Answer 2

Maximum demand tariff.

When industrial areas are charged more electricity charges as compared to residential areas it is called as  Maximum demand tariff.

• A tariff is referred to as the price at which power is given to customers.
• A consumer gets billed in terms of tariff units consumed for using or consuming the electric power.
• Since businesses in industrial regions are the biggest electricity consumers, they receive the most electrical supply.

• Big consumers pay two portions of the rate due to the peak demand for electricity.
• Demand fee and energy charge are the two components that make up the Maximum Demand Tariff.
• The energy charge is based on the monthly energy consumption in units (kWh), but the demand charge is based on the maximum demand in kVA. A minimum of 100 kVA of the chargeable demand must be met for tariff costs to apply.

• Electrical systems with a high load factor are the only ones that benefit from the maximum demand tariff. This holds true for instances where a consistent load and a significant amount of electricity were consumed over an extended period of time. If these requirements are not met, it is likely that the power fee under the Maximum Demand Tariff will be higher than the Non-Residential Tariff.

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