TARIFF

Image Courtesy: Pacific Gas and Electric Company

a collection of rules, definitions, electric rates and additional charges that specify how your electricity bill is calculated. Tariffs are set by the utility and approved by a governing body such as a public utilities commission or equivalent.

Pros

Provides a basis for consumer and investor confidence by accounting and detailing times and cost related to electricity delivery.

Cons

They can be hard to change; may comprise many individual pieces making them complicated or difficult to understand.

Real Talk

Tariffs are a powerful tool to providing direction for markets, investments and consumption.