This paper presents an analytical technique for determining peak, offpeak and midpeak hours tariffs for various durations of these three periods. The technique considers the existing flat rate tariff, an hourly generation scenario of a utility on an average yearly demand day, the weighted average life time, annutised capital cost and fuel cost of base and peak load plants, and a break even point condition in the utility's revenue. The developed tariff has been applied to 30 representative industrial consumers served by the Bangladesh Power Development Board (BPDB) to estimate the minimum possible shift in consumption pattern and hence corresponding reduction in peak generation capacity requirement as well as peak time load shedding by BPDB.