Constraint Tariff Model to Reduce the Amount of Cross Subsidy Incorporated in Electricity Tariff Using Iterative Optimization Technique

摘要

Indian electricity tariffs are not in-line with the actual cost of service. The Industrial consumers paying much higher charges in comparison to the cross subsidized categories voyage towards open access and this voyage lowers the revenue collection of the utility. Hence, the utility faces financial scarcity. To overcome this situation, this paper tries to propose a model in which the gap between the actual tariff and cost of service is tried to lower down and the utility is also benefitted by some profit at the end of every year under the policy tenure.