Discussion
Domestic consumers are charged on the basis of:
Answer: B
Domestic consumers are charged on a block rate tariff.
In a block rate tariff the energy consumed is divided into blocks, each charged at its own rate: for example, the first 100 units at one rate, the next 100 at another. It is the usual basis for domestic electricity bills, and the slabs let utilities protect small consumers while recovering costs from larger ones.
The flat demand tariff charges by connected load regardless of use, the flat rate tariff charges all units alike, and off-peak tariffs give cheaper rates at night for particular loads such as water heating.
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