Tariff refers to the rates charged for electricity consumption. The objectives of tariffs are to distribute costs among consumers and recover capital, operational, and maintenance costs as well as provide a return on investment. Tariffs vary based on consumer type and electricity usage levels, with different rates applied for different usage times or amounts. Common tariff structures include simple tariffs based solely on consumption, two-part tariffs with fixed and running charges, and time-of-use tariffs with higher rates during peak periods. Tariffs are designed both to allocate costs fairly and encourage efficient electricity use.