Electricity Billing Considerations: Difference between revisions

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===Energy charge rate (now used only for partial consumption cost calculation)===
===Energy charge rate (now used only for partial consumption cost calculation)===


Previously, energy was charged only based on a flat rate per unit of consumption. The energy unit cost could be annually adjusted and was decided by the national government. Today there are no developed countries still using the flat rate alone to determine energy cost.
Previously, energy was charged only based on a flat rate per unit of consumption. The energy unit cost could be annually adjusted and was decided by the national government. None of the developed countries still use the flat rate alone to determine energy cost.


Keep in mind that energy unit cost is also a value determined through production and distribution costs, that may or may not be separately reflected on the energy bill. The calculus below is repeated for each consumption price tier presented below.
Keep in mind that energy unit cost is also a value determined through production and distribution costs, that may or may not be separately reflected on the energy bill. The calculus below is repeated for each consumption price tier presented below.