what is tariff subsidy in electricity bill

what is tariff subsidy in electricity bill

1 year ago 118
Nature

Tariff subsidy in electricity bill refers to a government policy that provides financial assistance to electricity consumers by reducing the cost of electricity. The subsidy is usually provided to specific groups of consumers, such as residential customers or low-income households, to help them afford their electricity bills. The subsidy can be in the form of a direct payment to the consumer or a reduction in the electricity tariff charged by the utility company. The aim of the subsidy is to promote sustainability by motivating homeowners to use electricity more efficiently and to control demand. The subsidy can also be used to promote the use of renewable energy sources by making them more affordable for consumers. The amount of the subsidy and the eligibility criteria vary depending on the country and the specific policy in place.

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