Which tariff is most ideal for the consumer?

The correct answer is option 2):(Three part tariff)

Concept:

• Three-Part Tariff or Doherty Rate: The three-part tariff is the most ideal tariff for the consumer Three-Part Tariff: When the total charge to be made from the consumer is split into three parts, it is known as a three-part tariff.
• Three parts include fixed charge, semi-fixed charge and running charge Total charge = Rs (a + b × kW + c × kWh) a = fixed charge made during each billing period which includes interest and depreciation on the cost of secondary distribution and labour cost of collecting revenues b = charge per kW of maximum demand c = charge per kWh of energy consumed By adding the fixed charge to a two-part tariff, it becomes three-part tariff.
• This type of tariff is usually applicable to bulk supplies.