Differential Tariffs as a Driving Force for Electrical Energy Conservation

India is on the threshold of a growth trajectory. However, it is also facing a shortage of the supply, which is increasing day by day. At the present rate of growth, the energy demand is set to increase by nearly two folds by 2020. Out of many available methods, the simplest and the most effective method of minimizing this gap would be promoting the energy conservation. The utilities are trying their best on both the supply side management (SSM) and the demand side management (DSM) by introducing the different types of tariffs. In this research paper, a comparative study of the High Tension (HT), Tariff structure of five Indian states is carried out. The components of the tariff structure that are compared are Billing Demand, Energy Charges, Time of Day (TOD) tariff, Power Factor Incentive/Penalty, Load Factor Incentive, Penalty for exceeding the Contract Demand (CD) and Harmonic Penalty.