<p> An inclining block pricing structure is often applied as a method by which to charge consumers for utilities consumed. This pricing structure defines logical amounts of kWh which are called blocks or tiers where each is success block is priced slightly higher than the previous block during a given period; typically a calendar month. This method of billing is often called an Inclining Block Tariff (IBT) or a Stepped Tariff after the way the price of a kWh increases as the sum of kWh consumed during a period increases and can be applied to billing for electricity, water or gas. </p><p> <strong> For example: </strong> 0 - 500 | 501 - 1000 | 1001 - 2000 | 2001 - 3000 | 3001 > kWh </p><p> The effect of an Inclining Block Tariff (IBT), or Stepped Tariff, is that consumers who consume fewer kWh during the period, will pay a lower average cost per kilowatt price and therefore have a much lower monthly bill. While consumers who user greater amounts of kWh during the period will still benefit from the lower cost per kilowatt hour blocks, the average cost per kilowatt will be driven up as the consumer purchases ever greater amounts of kilowatt during the period as a result of the high kWh price associated with each successive block of kilowatt. For this method of billing to work there must be a method to meter the consumption and billing to total number of kilowatt hour consumed during a period in accordance with the blocks defined by the Inclining Block Tariff (IBT). </p><p> • First tier (B1) is defined as 500 kWh (0 - 50) in which each kilowatt hour is costed at 0.7931 </p><p> • Second tier (B2) is defined as 500 kWh (501 - 1000) in which each kilowatt hour is costed at 0.8065 </p><p> • Third tier (B3) is defined as 1000 kWh (1001 - 2000) in which each kWh is costed at 0.8199 </p><p> • Fourth tier (B4) is defined as 1000 kWh (2001 - 3000) in which each kWh is costed at 0.8398 </p><p> • Fifth tier (B5) is defined as any kilowatt hour purchased above 3000 (3001 - Infinity) in which each kWh is costed at 0.8499 </p><p> As an example of how the Inclining Block Tariff (IBT) effects a consumers bill let's assume a customer uses </p><p> 4000 kWh per month. This represents all the kilowatt hour from all the block tiers (sum of kWh represented by B1+B2+B3+B4+B5). The consumers average cost per kWh would be 0.7931 per unit </p><p> Now let's see how the consumers total billing and average price per kilowatt hour is affected if the consumer reduces consumption in a month to 3000 kWh. The consumers average cost per kWh would be 0.8499 per unit </p><p> Comparison of both scenarios shows that a <a href="https://www.home247.co/%E0%B8%82%E0%B8%B2%E0%B8%A2%E0%B8%95%E0%B8%B6%E0%B8%81%E0%B9%81%E0%B8%96%E0%B8%A7%E0%B9%81%E0%B8%A5%E0%B8%B0%E0%B8%AD%E0%B8%B2%E0%B8%84%E0%B8%B2%E0%B8%A3%E0%B8%9E%E0%B8%B2%E0%B8%93%E0%B8%B4%E0%B8%8A%E0%B8%A2%E0%B9%8C%E0%B8%A1%E0%B8%B7%E0%B8%AD%E0%B8%AA%E0%B8%AD%E0%B8%87-%E0%B8%A3%E0%B8%B1%E0%B8%8A%E0%B8%94%E0%B8%B2/" alt="ตึกแถว รัชดา"> ตึกแถว รัชดา</a> reduction in total number of kilowatt hour consumed during the month period had a dramatic effect not only on the total bill the consumer had to pay but also the effective average cost the customer paid per kilowatt hour . </p>
