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Electricity Supply by Best

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Submitted By avinashba
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INDEX

Sr. no. | Topic | Page no. | 1 | Objective and Scope | 3 | 2 | Introduction | 4 | 3 | BEST History | | 4 | Area of Operation/ Source of Electricity/ Market information | | 5 | Govt policies/ regulatory body | | 6 | Costing | | 7 | Price discrimination (Cross Subsidy) | | | Recommendations | |

1. Objective and Scope:

2.
Introduction:

Definitions:

In order to assist understanding of this project scope and the resulting analysis, it is useful to define some terms:

Tariff refers to a pricing option or pricing plan that includes a valid combination or set of pricing components.

Price is cost/value per unit or item.

Prices are usually fixed per time period (eg Rs/year, Rs/kW/year2 or Rs/day) or variable per quantity of electricity used (eg Rs/kWh, Rs/kW/year or Rs/kVA/year).

Chargeable quantity is the number of units or items.

Charge is the price multiplied by the chargeable quantity.

Aggregate Revenue Requirement is the Revenue requirement of the Licensee for recovery of allowable expenses and return on capital, through tariffs, pertaining to his Licensed Business. 3.
Costing

The goal of the MERC regulations is to to regulate tariffs of power generation, transmission and distribution and to protect the interests of the consumers and other stakeholders.

While MERC has designed regulations to handle tariffs for any kind of utility service, the focus here is on electricity distribution utilities within India.

4.2 What exactly is a Tariff?
Rather than a list of prices, a tariff should be thought of as an algorithm that generates a customer's bill from information about their energy use. Given the necessary input data and the bill calculation algorithm, a variety of prices can be defined as needed. The key thing to remember is that the price of electricity depends on

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