Tariff and Regulatory Basics
Domain 12: Tariff and Regulatory Basics
This domain tests tariff categories, sanctioned load, power-factor and time-of-day charges, and the regulator's role.
Core rules
- MERC approves tariffs and supply codes in Maharashtra; utilities apply approved categories such as residential, commercial, industrial and agricultural.
- Tariff depends on sanctioned load, consumption slabs, supply voltage and time of use.
- Power-factor penalty or incentive applies to eligible consumers; maintain power factor near unity, often 0.9 or above as per the tariff order.
- Time-of-day tariff gives rebates in off-peak periods and surcharges in peak periods, so TOD registers must be read.
- Security deposit, meter rent and open-access charges are separate from energy charges.
Worked example
A consumer shifts 100 kWh from peak to off-peak. If the approved TOD rebate is ₹1.50/kWh and the avoided peak surcharge is ₹1.00/kWh, the saving is 100 × (1.50 + 1.00) = ₹250 for that month. Reasoning: TOD savings combine the off-peak rebate with the avoided peak surcharge; always use the current tariff order rather than memory.
Traps that cost marks
- Assuming one tariff applies to all categories.
- Ignoring sanctioned load.
- Applying outdated rates.
- Forgetting the power-factor penalty.
- Reading only kWh and ignoring TOD registers.