Maximum Demand= 950.0 kVA Loss in switchgear=5.00 % Input Demand= 1000.0 kVA Cost of switchgear=Rs 60000 Annual charges on depreciation=Rs 7200 Annual fixed charges due to maximum demand corresponding to triff(b)=Rs 30000 Annual running cost due to kWh consumed=Rs 199680 Total charges/annum for tariff(b) = Rs 236880 maximum demand corresponding to tariff(a) = 950 kVA Annual fixed charges=Rs 30400 Annual running charges for kWh consumed = Rs 189696 Total charges/annum for tariff(a) = Rs 220096 Therefore, tariff(a) is economical