Fuel price adjustment (FPA)
Definition. Fuel price adjustment is a per-unit surcharge or refund approved monthly by NEPRA to reconcile what fuel actually cost to generate electricity in an earlier month against the fuel cost already built into the reference tariff.
Also called: FPA · F.P.A. · Fuel adjustment charge · فیول ایڈجسٹمنٹ
Where you see it: A per-unit rate line in the charges column, typically labelled FPA or F.P.A., multiplied by the month's units.
The two-month lag
The Central Power Purchasing Agency files actual generation costs for a month with NEPRA. NEPRA holds a public hearing, examines the fuel mix and the exchange rate, and notifies an adjustment. That adjustment is billed roughly two months after the consumption it relates to.
So the FPA on your July bill reflects generation economics in May. This lag is why FPA can rise in a month when fuel prices are visibly falling.
Why it swings
FPA tracks the marginal fuel on the system. A wet monsoon with strong hydel output displaces imported LNG and pushes FPA down, sometimes negative. A dry spring with plants on furnace oil pushes it sharply up.
Rupee depreciation feeds straight through, because imported fuel is contracted in dollars.
It scales with your units
The per-unit rate is identical for every consumer in a tariff category nationwide. The amount is not, because it is multiplied by your consumption.
The same FPA rate that adds a few hundred rupees to a 150-unit winter bill adds several thousand to a 900-unit summer one. Reducing units is the only lever a consumer has over this line.
Frequently asked questions
Can I complain to my DISCO about FPA?
There is nothing for them to decide. FPA is a national, regulator-notified figure applied uniformly; the DISCO is collecting it, not setting it. NEPRA's hearings are the forum, and they are public.
Why is FPA sometimes shown as a negative number?
Because actual fuel cost came in below the reference cost already charged, so the difference is refunded. Negative FPA months are real and do reduce the bill.
Related terms
- Quarterly tariff adjustment — How QTA differs from the monthly fuel adjustment, what capacity payments actually are, and why this line persists for several months at a time.
- Units consumed — The one number on your bill that you can actually verify yourself, how it is derived from two readings, and the arithmetic that turns it into rupees.
- Slab rate — How to read the slab table printed on the back of your bill, which slab your units land in, and the difference between marginal and re-priced slab billing.
Go further
Back to the full 44-term glossary, or open your own bill with the reference number lookup.