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We may or might not exactly be aware of it but power generation, transmission and distribution is a commercial activity like any other manufacturing or service industry. Of course due to the very nature in the product, it appears under essential services which can be regulated closely by the government in many countries. Still the main motive of companies working with power generation and distribution would be to earn profit by selling that electricity. In this article we are going to find out about the meaning of tariff along with the several types of expenses associated with power generation.

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