Moderate

In two part tariff, variation in load factor will affect____________?

Correct answer: B. operating or running charges

  • A. fixed charges
  • B. operating or running charges
  • C. both A. and (b)
  • D. either A. or (b)

Explanation

In a two-part tariff, fixed charges depend mainly on maximum demand, whereas running charges depend on energy consumed. A change in load factor changes energy use for a given maximum demand, so it affects the operating charge.

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