What is Fixed Cost and Semi Fixed Cost in Electrical

What is Fixed cost in electrical:

Fixed cost in electrical, is nothing but a maintenance cost of an electrical power plant including employee’s salary, fuel cost, transportation losses, interest towards initial investment, etc. In India, fixed cost will be collected on a monthly basis. It is not depending on the maximum demand.

Example: Kerala- domestic electricity service

Since KSEB collect their fixed cost irrespective of the connected load.

Semi fixed cost:

The cost is depending on the maximum demand of the service. The semi fixed cost is collected based on the connected load of the service.

Example: Bihar State.

Since Bihar state electricity board charging their consumer on per kW basis and it will be monitored periodically by the electricity board.

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