Question

PNG Power is introducing a new system called "Controlled Usages" that will substitute for the currently used easy pay policy as approved by the board. The following shows a monthly hypothetical charging rule for an electricity utility.

- An installation fee is K15,
- 50 toea per unit is charged for the first 200 units (kilowatt hours), and 60 toea is charged for each unit exceeding first 200 units. If these charges include VAT, answer the following questions.
(a) Construct a formula for this charging function.

Answer 1

To construct a formula for the charging function, we can break it down into different parts. The formula would be: Cost = 10,000 toea + 60(x-200) + K15.

Step-by-step explanation:

To construct a formula for the charging function, we can break it down into different parts. Let's denote the number of units (kilowatt hours) used as 'x'. The formula would be:

1. For the first 200 units, the cost would be 50 toea per unit. So, the cost for the first 200 units would be 50 toea multiplied by 200: 50x200 = 10,000 toea.
2. For any units exceeding the first 200 units, the cost would be 60 toea per unit. So, the cost for the units exceeding the first 200 would be 60 toea multiplied by (x - 200): 60(x-200).
3. Add the installation fee of K15 to the total cost.

Putting it all together, the formula for the charging function would be: Cost = 10,000 toea + 60(x-200) + K15.