It is a description of a tariff structure, that reflects all the cost of electricity generation, transmission, distribution & supply to the customer.
OBJECTIVE OF CRT
The first one is it will reduce the amount of subsidy the government pays for electricity customers, since the high value customers will be paying the total costs with no government subsidy. This will help the government to direct the savings from subsidy to other critical project the country needs to maintain its growth.
The second impact is to reduce the investment in the network to cope up with the increasing peak load demand. Meaning that when the peak load of the customers is high, the government will have to invest in their electricity infrastructure to be able to provide electricity at the peak load, since the price of electricity at peak load is very high. Applying CRT will drive customer to reduce their peak load, in order to reduce the value of their bill. When the peak load of the network is reduced or at least sustained, the government can reduce the amount of investment in the network, and direct the savings to other critical national projects.