What are electricity tariffs-

In UPPCL Uttar Pradesh, Electricity, Tariff is the rate of the unit charged by the licensee for a different type of consumer, or we can say in other words, the tariff is the way of charging bills with a specified rate from the consumer for consuming electric energy. The tariff includes the total cost of generating and distributing electric energy plus maintenance of line and managing of manpower costs. In the last article, we will see UPPCL ELECTRICITY TARIFF.

Basically, electricity tariffs are a rate of energy consumed by a different type of consumer( like domestic, commercial, irrigation, industrial). The consumer electricity bill varies according to their use. For example Commercial consumers more electricity tariffs or bills because they consume more energy for more hours than domestic consumers. UPPCL ELECTRICITY TARIFF.

The electricity tariffs depend on the following factors:

1-Types of use( like domestic, commercial, irrigation, industrial).

2-Time at which load is required (TOD=time of the day)

3-The power factor.

4-The amount of electrical energy used.

The electricity bill of the consumer has three parts, known as fixed charges D, semi-fixed charges Ax, and running charge By.


Here C is – a bill for a period (say one month)

 x – maximum demand/max load (kW) during the period (kW or kVA)

 y – Total energy(kwh) consumed during the period (kWh or kVAh)

 A – rate cost per kW or kVa of maximum demand.

 B – rate per kWh of energy consumed.

 D – fixed charge for each billing period.

This is called a three-part electricity tariff, and it is applied to all electricity consumers.

Factors Affecting the Electricity Tariffs

The following factors are taken into accounts to decide the electricity tariff:

a- Use of Load –  we can distribute the load in four categories like domestic, commercial, or industrial, and irrigation.

b- Types of load-The rate for industrial consumers are a little bit higher than domestic consumers. And irrigation consumers charged minimum tariff due to subsidized rates.

cMaximum demand – maximum demand is the maximum load used by a consumer at a moment. Or the sum of load connected in kw.

Types of Electricity Loads:

Type of Electricity load in UPPCL is classified as follow-

a-Domestic load 

This type of load includes domestic lights, energy used for domestic appliances such as light fan television, water heaters, refrigerators, 

b-Commercial load

It includes a light fan for a shop, advertisements and electrical appliances used in shops and hotels, etc.  

c-Industrial load

It includes the load demand of various industries. The magnitude of this type of load depends on the type of industry like rice mill, oil purifier, atta chakki.

d-Municipal load:

It consists of street lighting in Nagar Nigam, the power required for water supply at Nagar Nigam area, and drainage purposes. This pumping process occurs at night time only. 

e-Irrigation load

This type of load includes electrical power needed for pumps driven by electric motors to supply water to fields. This type of load is supplied for night 12 Hours. Traction load: It includes trams, cars, trolleys, buses, and railways. This type of loadØ has wide variation depends on the time

Types of electricity tariff

  1. Simple tariff

 2. Step rate tariff

 3. Block rate tariff

 4. Power factor tariff

 5. Two-part tariff

 6. Three-part tariff

 7. Flat rate tariff

 8. Time of each day (TOD) 

a-Simple tariff 

The cost of energy consumed depends on energy used and the rate.

Means. A=Bx

A= total bill amount, B rate of per unit, x is unit consumed

b-Step rate tariff :

It is a flat-rate tariff. In this type of tariff decreasing unit charges for a higher range of consumption. If consumption increases rate would decrease.

The explanation

 we can say,

 Rs. 6/unit up to but 50 unit (kWh) consumption

 Rs. 5/unit for 50 to 200 kWh consumption

 Rs. 3/unit exceeding 200 kWh consumption.

c-Block rate tariff

The first slot of energy is charged at a higher rate and further on slot of energy is charged at reduced rates than the previous slot. for example, the primary 40 units could also be charged at the rate of 4 rs/unit. subsequent 50 units could also be charged at the speed of three 2 per unit

 The consumption exceeding 100 units could also be charged at the rate of 1rs per unit

 The benefit of this tariff is that the consumer would get a rebate for consuming more electricity. And BPL or poor consumers would be charged less and the rich would be charged more for higher use of consumption. 

d-Power factor tariff

This type of tariff is applied in generating station, not in the distribution system. If the efficiency of plant and equipment work on upon the facility factor, therefore, to extend the maximum use of generating plant and electrical parts to the utmost, the plant must be operated at the highest economical power factor. that’s why many times distribution companies are penalized for poor power factors by applying the sorts of power factor tariffs.

e-Two-part tariff

In this tariff type total bill amount depend on two-term called fixed charge and running charge. Since fixed cost does not depend on of energy used and it depends on the maximum demand, therefore, the fixed cost is framed at a particular amount per kW/kva of maximum demand, which may be calculated based on connected load also or the total sum up of kW capacity of all the consuming devices owned by a particular consumer. The running charge is framed at a specific amount per kWh for the total energy consumed. 

total energy charges C=Ax+By

Here C is – Bill for a period (say one month)

 x – maximum demand/max load (kw) during the period (kW or kVA)

 y – Total energy(kwh) consumed during the period (kWh or kVAh)

 A – rate cost per kW or kVa of maximum demand.

 B – rate per kWh of energy consumed.

f-Three-part tariff

In this type of tariff, the total bill charged can be classified into three parts.

 Fixed charges: which recovers expenses in giving supply or maintenance charges.

 Semi-fixed charges: These are applied to the idea of maximum demand in kW shown on the meter.

 kVA which recovers plants initial cost plus operating expense.


Here C is – a bill for a period (say one month)

 x – maximum demand/max load (kw) during the period (kW or kVA)

 y – Total energy(kwh) consumed during the period (kWh or kVAh)

 A – rate cost per kW or kVa of maximum demand.

 B – rate per kWh of energy consumed.

 D – fixed charge for each billing period.

The following relation shows the entire charge relation

 Total charges = C=Ax+By+D

g-Flat rate tariff

In this type of tariff consumer charged only a fixed amount irrespective of the use of energy. Only a fixed amount of charge would be given by the consumer. Like in irrigation only 500 rs per month would be charged irrespective of the hour of supply used by consumers.

h-TOD (Time of Day Tariff)

This tariff is also called Time of Day. In this tariff rate would be different for different times of the day. this tariff is framed in such a way that the consumers have to pay less in the non-peak load period of the day and to pay a higher rate during the peak-load period. For such a tariff type the meter will pay role for dividing the day, month and year into tariff slab.

This tariff is useful to those consumers as well as to the electricity company. it controls the consumption on the part of the consumer resulting in automatic load control on sldc.


In a distribution company like UPPCL, the UPPCL electricity tariff is categorized in the following way

LMV-1 Domestic light fan consumer 

LMV-2 Non-domestic consumer or you can say commercial connection

LMV-3 PUBLIC LAMPS, for street light 

LMV-4 light fan for the public and private institution:

4 (A) For Public Institutions

4 (B) For Private Institutions

LMV-5 Private tubewell for irrigation

LMV-6 Small and medium power consumer load like rice mill, ice cream factory.

LMV-7 public waterworks. sewage treatment plant

LMV-8 state tubewell. pump canal.

LMV-9 temporary connection for construction.

LMV-10 departmental employee and pensioner

LMV-11 electrical vehicle charging system 

HV-1 multi-story Buildings covered under LMV-1b & HV-1b of the Rate Schedule having load more than 75 kw.

HV-2 large and heavy connection having load more than 75 kw and supply on 11 kv or more

HV-for traction, metro railways

HV-4 Lift canal having load more than 100kva and supply on 11 kv and more.

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