A tariff has declining energy blocks: the first 100,000 kWh at $0.12/kWh and additional kWh at $0.08/kWh. A project saves 20,000 kWh from a month that originally used 150,000 kWh. What energy price should generally be used for the saved kWh?
- A$0.08/kWh, because the reduction comes from the tail block first
- B$0.12/kWh, because the first block is always avoided first
- C$0.20/kWh, because both blocks must be added
- D$0/kWh, because declining blocks do not allow savings