Tariffs
A tariff is a pricing plan that specifies the services you bill and the method used to calculate the charges. The Tariffs page is the starting point for creating and maintaining prices for the utilities you supply.
A tariff combines two elements:
- Tariff Components – define how SkyBill measures the quantity to bill (for example, meter readings, daily charges, or formula-based calculations).
- Rates and pricing conditions – set the price or fee that applies to each component.
First, you need to create tariff components that describe different ways you track consumption. Then you add those components to a tariff and apply the appropriate rates or advanced pricing rules. When the tariff is ready, you can implement it by setting its starting date. You can also update it or end the tariff to ensure existing contracts and future billing remain accurate.
Create a tariff
Note
To create a tariff, you must select one or multiple tariff components and assign prices to them. Tariff components define how SkyBill measures the quantity that will be billed. Each component represents one method of calculating the quantity during the billing cycle. You must create the necessary components before you can build a tariff. To learn more, go to the Tariff Components.
- Select Search (Alt+Q)
in the upper-right corner, enter Utility Tariffs, and then choose the related link. - Select New to create a tariff.
- On the General FastTab, configure the fields as described in the following table.
| Field | Description |
|---|---|
| Code(*) | Enter a unique identifier for the tariff. |
| Name(*) | Provide a clear name that describes the tariff. |
| Starting Date(*) | Enter the date when the tariff becomes active. |
| Ending Date | Leave this field blank as long as the tariff is active. Use this field only with the Create New Tariff Version action to specify the end date of the current tariff version. By setting up end dates, you can clearly distinguish between different versions of the tariff. To learn more, go to the Change a tariff. |
| Reconcile Previous Periods | [Add description] |
| Reconcile Period Formula | [Add description] |
(*) Required field.
- In the Tariff Lines section, add tariff components and set their prices. You can add multiple components to a single tariff. Repeat the steps described in the next section for each tariff component. To learn more in the Create and configure tariff lines section.
Create and configure tariff lines
| Field(s) | Description |
|---|---|
| Tariff Component Code(*) | Select the tariff component. |
| Resource(*) | Select the resource that applies to this tariff component. To learn more, go to Resources. |
| Cost and Profit | Enter the values associated with the tariff line. Those fields are optional but can be useful for internal analysis. |
| Rate(*) | Enter the price that applies to the tariff line. The rate is expressed as a price per unit of measurement, such as dollars per kilowatt-hour (kWh) for electricity or dollars per cubic meter (m³) for water. |
| Margin | Enter the desired profit margin for the tariff line. This is the percentage that you want to add to the cost to determine the final rate. |
| Discount % and Discounted Rate | Set up a discount that applies to the tariff line. SkyBill will display these discounts on the sales invoice. Discounts are based on the same concept as the Line Discount% on the Sales Invoice in Dynamics 365 Business Central. To learn more about discounts in Business Central, go to Set up prices and discounts and Record special sales prices and discounts. |
| Discount Start Date and Discount End Date | Specify the period during which the discount is valid. |
| Type | [Add description] |
| Rate/Cost Calculation | Specify calculations of either the Profit or Rate field. Choose Profit=Rate-Cost option if you know the cost and rate, or choose Rate=Cost+Profit option if you know the cost and the profit. [T1] |
| Index Formula | Specify the external component used to index the prices. This is a price formula that can be applied to the tariff line. The Index Formula is primarily used by district heating providers, where the price of heat depends on the market gas price. The utility company can sign a contract with the customer in which the heat price is indexed to the gas price. This way, the company can limit the risk caused by market price fluctuations. |
| Cons. Conversion Formula | [Add description] |
| Step Tariff | Select the checkbox to enable step tariff pricing for the tariff line. To learn how to set up step tariffs, go to the Tier pricing section. You specify the tier pricing details, including the step tariff rates, on the Utility Step Tariffs SKY page. However, SkyBill will apply the setup on the Utility Step Tariffs SKY page only if you select the Step Tariff checkbox on the tariff line. |
| Minimum Quantity and the Maximum Quantity (M) | Specify the range of quantities to which the tariff line applies when displayed on the marketing site. The customer can select the desired quantity within this range. [T2] |
| Unit of Measure | Select the unit of measure that applies to the tariff line. |
| Hide (M) | Select the checkbox to hide the tariff line on your marketing site. For example, the website where you present your offering can contain three options: Basic, Standard, and Premium. Each option represents a different tariff. You can present those tariffs on the portal with some details and hide others. Some tariff lines in SkyBill are included on the tariff for technical reasons. You may want to hide them. |
| Hide Price (M) | Select the checkbox to hide price on the marketing site. |
| Hide Min/Max Quantity (M) | [Add description] |
| Editable | Select the checkbox to allow editing of the tariff line on the customer portal. [T3] |
| Short Description (M) | Enter a brief description of the tariff line that will be displayed on the marketing site. [T4] |
| Long Description (M) | Enter a detailed description of the tariff line that will be displayed on the customer portal. |
| Landlord Rate Share field and the Tenant Rate Share | Specify the percentage of the rate that applies to the landlord and tenant, respectively. Learn more about how To set up landlord and tenant billing on the tariff lines. |
(*) Required field. (M) Field used only on the marketing site.
Advanced pricing options
Select one of the following actions on the Tariff Lines for more advanced pricing options.
Index Setting
Index settings are used for tariff components whose prices depend on external vendors, such as gas costs.
Tier pricing
Tier pricing allows you to define different rates for specific consumption ranges within the same tariff line. They're used to apply higher or lower rates as consumption increases. Tier pricing is in most cases used for consumption-based tariff components, such as electricity or water usage, but it can also be applied to other types of tariff components.
This approach provides flexibility in designing pricing models, for example by offering lower rates for basic usage and higher rates for excess consumption, or vice versa. They let utility providers shape consumption patterns by adjusting prices across different usage ranges.
The following examples illustrate how to set up and calculate tariffs using both flat-rate and step-tariff pricing methods.
Follow these steps to set up tier pricing for a tariff line.
- Select the checkbox in the Step Tariff field of the tariff line you want to configure.
- Choose Step Tariff action.
- Define the step tariff details on the Utility Step Tariffs SKY page. There are two ways to set up your rates on that page: Flat rate or Step Tariff.
Flat rate
Flat-rate pricing lets you set a single price for a specific quantity range. To enable flat rate pricing, select the Flat Rate checkbox on the Utility Step Tariffs SKY page.
For example, you can set a flat rate of 15 dollars for consumption from 0 to 100 kWh. Once consumption reaches 100 kWh, the rate drops to 0.16 per additional kWh.
| Quantity From | Rate | Flat Rate | Step Tariff |
|---|---|---|---|
| 0 | 15 | x | |
| 100 | 0.16 |
If the customer uses 1200 kWh units, the invoice will contain two lines.
| Item | Qty | Unit of measure | Rate | Amount |
|---|---|---|---|---|
| Base Charge (covers 0–100 kWh) | 1 | — | $15.00 | $15.00 |
| Excess Usage (above 100 kWh) | 1100 | kWh | $0.16 | $176.00 |
| Total | $191.00 |
If the customer uses 90 kWh, they will be charged only the Base charge flat rate of 15 dollars. The flat rate means the customer pays a fixed amount for consumption within the defined range, regardless of how much they actually consume.
Tip
You could achieve a similar effect by setting up several tariff lines and applying conditions to them. For each tariff line, you would need to specify the appropriate parameter in the Condition field on the Utility Tariff Component Card page. However, using step tariffs is more efficient and easier to manage.
Step Tariff not selected for any line
If you don't select the Step Tariff checkbox for any line, SkyBill will apply the rate from that line to the corresponding consumption portion. For example, you want to set up a tariff where the rate increases with increasing consumption. You can define the following rates:
| Quantity From | Rate | Flat Rate | Step Tariff |
|---|---|---|---|
| 0 | 0.14 | ||
| 500 | 0.18 | ||
| 1,000 | 0.22 |
If the customer uses 1200 kWh, the invoice will contain three lines.
| Item | Qty | Unit of measure | Rate | Amount |
|---|---|---|---|---|
| Block 1 (0–500 kWh) | 500 | kWh | $0.14 | $70.00 |
| Block 2 (501–1,000 kWh) | 500 | kWh | $0.18 | $90.00 |
| Block 3 (above 1,000 kWh) | 200 | kWh | $0.22 | $44.00 |
| Total | $204.00 |
Step Tariff selected for all lines
If you select the Step Tariff checkbox for all lines, SkyBill will apply the rate from the last line (the last step) that matches the consumption level. For example, let's use the same rates and apply the step tariff to each line.
| Quantity From | Rate | Flat Rate | Step Tariff |
|---|---|---|---|
| 0 | 0.14 | x | |
| 500 | 0.18 | x | |
| 1,000 | 0.22 | x |
If the customer uses 1,200 kWh, the invoice will contain only one line. SkyBill will apply the same rate of 0.22 to all 1,200 kWh. The 0.22 rate applies to all customers who exceed 1,000 kWh of consumption in the billing period.
| Item | Qty | Unit of measure | Rate | Amount |
|---|---|---|---|---|
| Standard Rate (all consumption) | 1,200 | kWh | 0.22 | $264.00 |
| Total | $264.00 |
If the consumption was 900 kWh, the 0.18 rate would be applied to all 900 kWh.
Discounts
For each line on the Utility Step Tariffs SKY page, you can set up a discount. You can specify the discount by entering the values in either the Discount % or Discounted Rate field. Always use them with a specific time range specified in the Discount Start Date and Discount End Date fields.
Note
Discounts are not the third option to setting prices on the Utility Step Tariffs SKY page. They are an additional feature that can be applied to any tariff line. Their purpose is to provide pricing flexibility by allowing temporary rate reductions. That's why the Discount Start Date and Discount End Date fields are essential for that functionality.
Time of Use
Time of Use pricing allows you to define segments for various types of days, as well as use different season prices and set up individual rates for each segment.
To set up different pricing based on time of day or season, select the tariff line with the Time of use totaling type applied to the tariff component, then select the Time of Use action. On the Time of Usage Map Details list, you can define different segments of the day and different seasons. Each segment can have its own rate.
On the Time of Usage Map Details page, you can define different segments of the day and different seasons. Each segment can have its own rate. You need to specify the following fields for each line:
| Field | Description |
|---|---|
| Map Code | Select one of the maps from the list. |
| Applies-To |
Change a tariff
Whenever you need to update a tariff, for example to change prices or add new components, create a new version of the tariff. This way, you maintain a clear history of changes and ensure that existing contracts and future billing remain accurate.
For each tariff, you can specify the date it expires. To do that, choose Actions, and then choose Create New Tariff Version. You cannot create a new version of a tariff unless you specify the end date of the current version.
You can also view the previous versions of the tariff by selecting Archived Tariff Versions from the Related tab.
Related information
Totaling types
Tariffs
Design details
Meter points
Contracts