When a consumer consumes a good or service it is a well-known fact that the price of such a good or service needs to be paid by the consumer. The same principle applies for electricity consumption. Therefore, all electricity related tariffs and charges are to be paid by the consumer.When consumers make direct purchases of goods or services, the prices of these goods or services is generally made available or predetermined to the consumer beforehand. In case of a network industry the situation is slightly different. Electricity being a network industry, at the last point of the network, where the end consumer connects to the network is where the payment arises. However, to bring electricity to the doorstep of the consumer a set of extensive related activities needs to take place, which comprises of a sequence of nodes inter-connected into a network. Hence all the costs that incurred within the electricity network, need to be accounted for in determining the final price to be paid by the consumer. Following are the major component of the activities in the Network:
- Electricity Generation:
- Electricity Transmission:
- Electricity Distribution:
Read More…