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.
