FPA in FESCO Bill
FESCO, also known as the Faisalabad Electric Supply Company, is a key provider of electricity to its customers. If you are a FESCO customer, you may have seen the term “FPA” on your electricity bill.
In this guide, we’ll explain the FPA calculation and its impact on your overall FESCO bill, helping you understand the significance of FPA on your monthly statement.
What Does FPA Stand For?
FESCO electricity bills include an additional charge called Fuel Price Adjustment (FPA) to manage the sudden changes in the cost of fuel used to generate electricity.
This adjustment helps protect consumers from sudden fluctuations in electricity prices due to changes in fuel costs.
How To Calculate FPA in FESCO Bill
The Fuel Information Price List, published by the National Transmission and Dispatch Company (NTDC), provides essential information on the prices of various fuels used in power generation plants, including LDO, HSD, and Furnace Oil. This information is crucial for determining the Fuel Price Adjustment calculation.
The Fuel Price Adjustment (FPA) is determined by combining the fuel charges from all power generation plants and calculating a weighted average price per unit of fuel used. This includes Elementary Fuel Charges (EFC) per unit as well as other operating expenses.
To recover these costs from customers, a surcharge known as the FPA is added to your bill. The FPA is listed as a separate line item on your monthly bill, alongside other charges such as energy charges, monthly minimum charges, and adjusted energy surcharge.
Factors Affecting FPA in FESCO Bills
The variation in FPA charges on your FESCO electricity bill is influenced by the following factors.
- Fuel prices: The prices of natural gas, oil, and coal have a significant impact on the determination of the FPA. Depending on fluctuations in fuel costs, the FPA charges may either increase or decrease.
- Dollar rate: Fluctuations in the dollar rate have a significant impact on the price of imported fuels for countries such as Pakistan, and can also influence the FPA charges on electricity bills.
- Economic conditions: The economic stability of a country can indirectly affect FPA prices, particularly if the nation relies on imported fuel. Economic conditions can cause fluctuations in fuel prices, which can subsequently impact FPA charges.
Calculating FPA in FESCO Bill
To calculate the Fuel Price Adjustment (FPA), you should use the most recent FPA rates, which are subject to change every month.
You can also locate the FPA rate for the previous month on your most recent bill. To calculate your FPA, all you need to do is multiply the FPA rate on your bill by your total electricity consumption during the billing period.
It’s crucial to remember that the FPA rates can fluctuate, so it’s important to carefully review your FESCO bill each month for any updates to the FPA rate.
Conclusion
The Fuel Price Adjustment (FPA) in the FESCO Bill is intended to shield consumers from abrupt shifts in electricity prices due to fluctuations in fuel costs.
To calculate the FPA, it is necessary to refer to the Fuel Information Price List (FIPL) issued by the NTDC and figure out the weighted average price per unit of fuel used.
FESCO is committed to upholding transparent and equitable billing standards as a conscientious power distribution company. Customers can stay informed about any adjustments in FPA rates by reviewing their electricity bills.