Identify the type of tariff the consumer is charged Rs 4 per unit if the consumer does not exceed 50 KWh, Rs 3.50 per unit if the consumer does not exceed 50 KWh but less than 200 kilowatt hour, and Rs 3 per KWh if consumer exceeds 200 kilowatt hour.

Correct Answer: Step rate tariff
Step rate tariff is a group of flat rate tariff of decreasing unit charges for higher range of conception. Charges per KWh are reduced for increas in power consumption above different predefined step levels. This type of tariff takes into account the fact of lower generation cost going to higher energy consumption consequent to improvement of load factor.