Commonly termed as a "fixed charge," this is a fee added to a commercial consumer's account.
Basis:
The municipal authority of the area sets the capacity charge, which is independent of actual electricity usage.
Calculation:
The charge derives from the rating of the main circuit breaker that supplies electricity to the premises. Prestige Metering Services has no influence over the determination of this charge.
Applicability:
This charge pertains exclusively to business premises and is exempt from domestic ones.
Advantage:
Though commercial/business consumers have this additional fee, they often benefit from substantially lower kWh unit tariffs. This advantage typically compensates for the compulsory fixed charge.
Links to Municipal Tariff Structures for Consumer Accounts:
