Tariff is defined as the rate of consumption of electrical power. There are different tariff structures that distribute the cost of electricity among consumers in a fair manner and help utilities recover their capital investment costs. Some common tariff structures include simple tariff, flat demand tariff, block rate tariff, flat rate tariff, two part tariff, maximum demand tariff, power factor tariff, three part tariff, and peak tariff. Each structure determines electricity rates and bills in a different way based on factors like units consumed, maximum demand, time of use, and power factor.