Electricity supply tariffs. Their simplification by discrimination

In the fourth annual report of the Electricity Commissioners, reference is made to the rateable-value system of charging for supply, the limitations of that form of tariff, and its unsuitability for general application. In this paper the authors suggest a two-part tariff, the first charge being based upon an agreed maximum demand in watts for which a definite number of units at 8d. per unit are charged per kilowatt of demand, and all over that number are charged at a low price per unit. Being based on the electrical demand of the consumers, this tariff can be offered to all classes of consumers, thus equity is secured in every instance. Provision is made whereby the consumer may exceed his maximum demand; but should he do so the consumption is recorded on a second dial, the units thus registered being charged for at a higher rate. A simple, reliable, effective mechanism for automatically changing the record from one dial to the other is described. Attention is directed to the important part which diversity and load factor play in framing tariffs.