two-part tariff

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Two-Part Tariff

A set fee assessed with a purchase along with a per-unit charge. For example, a credit card carries a two-part tariff if it has an annual fee and a minimum fee with each purchase. A two-part tariff is not necessarily an import tariff.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

two-part tariff

see TARIFF.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

two-part tariff

a pricing method that involves a charge per unit of GOOD or SERVICE consumed, plus a fixed annual or quarterly charge to cover overhead costs. Two-part tariffs can be used by PUBLIC UTILITIES or firms to achieve the benefits of MARGINAL-COST PRICING while raising sufficient revenues to cover all outlays (so avoiding a deficit and problems of financing it). Simple two-part tariffs are presently used to charge customers for gas, electricity telephones, etc., although more sophisticated multipart tariffs can be adopted to reflect the different marginal costs involved in offering products like electricity and transport services at peak and off-peak periods. See also AVERAGE-COST PRICING, NATIONALIZATION, PEAK-LOAD PRICING.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The shares may be issued on the pattern of Sukkuk Bonds by taking two part tariff from NEPRA.
To establish Total Revenues [R.sup.m.sub.i] under a mechanical meter regime with the conventional two part tariff comprising daily fixed change [T.sup.m.sub.f] and variable energy charge [T.sup.m.sub.v][paragraph]
Marginal cost pricing with subsidization, inverse elasticity pricing, and the two part tariff can all increase allocational efficiency, but they do not provide the firm the incentive either to increase dynamic and X-efficiency or to decrease transaction costs and rent seeking.