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MULTIYECTOR RE\IIEW ATID TRAINING CENTER

d. Depreciation
e. General maintenance, required whether the plant is in operation or not

2. Enerry Element - sometimes called running cost, it is the operating expense to generate power/
energy which includes the following;

a. Fuels
b. Labor for operation
c. Facilities, water, oil supply
d. Maintenance required when the plant is in operation only

3, Customer Element - cost to bring power to the uservcensurners which includes the following
a, Secondary distribution system, including service drop and meter
b. Personnels for lines, meter readers, collection bills
c, Advertisement
d. Franchise ( 50 yr period)
4. Investors profiU Return on investment - controlled by tbe government

Energy Element is dependent on the volume/ Ievel of the generated KW or Kwh


Customer Element is dependent on the number of customer

,-/Types of Tarifr
1 . - there is a fixed3g1g per ly[consumed. U g qd tu- rg r r z \ e;<k-. t
Uniform rate Taritf
2.FIatrateTariIf_whendifferent^Iffisarechargedatdifferentuniformrates.Itis
generally used for domestic purposes.
3. Block rate Tarilf - when a block of energy is charged at a specified rate and the succeeding blocks
of energy are charged at progressively reduced rates. This tariffhas the advantage of encor"lraging
energy consumption.(This is also called "room rates").
Ex,
P L75 per unit for the frst 100 units
P 1.5 per rurit for the next 200 units
P 1.00 per unit for the rest

4. Two prrt Tariff- there is a fixed charge on the basis of their maximurn demand and running
charge based on the energy consumed. For the fixed charge, either a maximum demand indicator is
installed, or othenrise the chare is based on the installed capacity ( it is also called 'two charge
tariff ).

5. Marimum demand Tarilf- it is similar to two paxt tariffwith the only difference is that maximum
demand is actually measured by installing a rna,ximum demand meter in the premises of the
consumer. It is mostly applied to the large users.

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