Fuel Price Adjustment in Electricity Bill Pakistan 2023

With the unbelievable hike in electricity rates, consumers are not only criticizing the power supply companies but also protesting over the fuel cost adjustment (FCA) charges, which are a significant chunk of their current electricity bills. The FCA is levied to adjust the monthly electricity fee based on the value of the currency in the international market and the cost of crude oil, natural gas(LNG), and coal.

Fuel Price Adjustment In Electricity Bill Pakistan

Fuel Adjustment Charges In Electricity Bill, Recently Tahir Abbas, HOD Research at Arif Habib Corporation Ltd, interview with BBC Radio Service, Said NEPRA issues a reference fuel cost at the beginning of FY year (fiscal year). He added that actual fuel costs monthly might measure up to the reference. Basket fuel cost is determined by assessing the total cost of various fuel sources like coal, LNG,  and furnace oil utilized for producing power during one month.

Fuel Price Adjustment in Electricity Bill Pakistan In Urdu

بجلی کے نرخوں میں ناقابل یقین اضافے پر صارفین نہ صرف بجلی فراہم کرنے والی کمپنیوں کو تنقید کا نشانی بنا رہے ہیں بلکہ ایف سی اے / ایف پی اے  کی مد میں بجلی کے بل میں  شامل کرنے پر حکومت کے خلاف بھی سراپائے احتجاج ہے ۔ ایف سی اے / ایف پی اے کوئلے ، گیس خام تیل کی بین ۔الاقوامی منڈی میں اضافی کی بنیاد پر لگایا جاتا ہے ۔ کیونکہ پاکستان یہ ساری چیزیں امپورٹ کرتا ہے

fuel price adjustment charges

Fuel Price Adjustment Formula

Toward the end of every month, the Basket fuel cost is compared with the NEPRA’s reference fuel cost, and afterward, the adjustment is put on the consumer’s power Bills following two months. If the total fuel cost in a specific month is more than the reference cost, then, at that point, the extra sum will be put on the consumer’s bill and on in case the fuel cost is not precisely the reference cost. He added that the amount deducted from the bill is known as the FCA.

How is the FCA Determined?

Famous economist Ammar Habib said that various factors determine FCA. But explaining the fuel we use to generate electricity plays a vital role. We check the quantity and purchase price if a power plant uses coal. He further said that if we generate electricity from coal and gas, the FCA will increase. Ammar Habib added that the value of the rupee in the global market also affects FCA. He further said that the country imports coal, LNG, and furnace oil. So obviously, the rupee’s value will directly affect the price of electricity.

Watch this video to learn about fuel Price Adjustment In Electricity Bill Pakistan.

Why FPA/FCA Charges In Electricity Bill?

Why fuel price adjustment in electricity bill Pakistan. Answering an inquiry, Ammar Habib said that the public authority used to give subsidies because of fuel cost changes. Resultantly, it expanded the budget deficit, caused inflation, and the state needed to take more credits. Last year, the Govt, at last, decided to add the FCA to the consumer’s electricity bills. Besides this, it’s positive or negative, he added.

How are fuel adjustment fees calculated?

If the total fuel price for a month is higher than the reference, the consumer will be charged an additional amount. The FCA will be subtracted from the bill if the fuel cost is lower than the reference.

FPA Stands For Electricity Bill

FPA Stands For Fuel Price adjustment. National Electronic Power Regulatory Authority (NEPRA) has issued a letter to power companies to repay the amount Collected on fuel cost Adjustment (FPA) to customers.

Download NEPRA Fuel Price Adjustment Notification

TRF-100 MFPA XWDISCOS FPA MAY-2022 07-07-2022 12288-03

Calculate Fuel Price Adjustment in Electricity Bill Pakistan.

Calculation of fuel price adjustment in electricity bills or how to calculate FPA/FCA in the electricity bill process is straightforward. NEPRA has decided to introduce Fuel Charge Adjustment (FCA) due to increased fuel prices.  According to NEPRA, fuel charge adjustment is added to consumers’ monthly bills. And it will apply all over Pakistan.  Karachi Electric (KE) has created a calculator. Check the FCA applicable to your bill as per the procedure recommended by NEPRA.


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