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A three-part tariff adds to the demand and energy charges a

  • A.surcharge for peak hour consumption
  • B.rebate for prompt payment of the bill
  • C.fixed customer charge
  • D.penalty for a poor power factor

Answer: C

Correct answer: fixed customer charge

The third part is a fixed sum per connection per month, covering the costs that vary neither with demand nor with consumption - metering, billing, meter reading and the account itself. So a three-part tariff has one charge for each kind of cost: customer-related, capacity-related and energy-related.

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