Fuel Charges Adjustment on Your MEPCO Bill

The fuel adjustment is the line that makes two bills with the same units cost different amounts. It is small on most home bills, but it explains a lot of surprises.

Updated: · Facts checked against MEPCO, NEPRA and PITC sources

Fuel Charges Adjustment on Your MEPCO Bill
Quick answer: The fuel charges adjustment (FCA, printed on MEPCO bills as FPA) passes on the difference between the fuel cost assumed in the tariff and the actual fuel cost of generating power in an earlier month. NEPRA decides it after a public hearing. It can be a charge or a refund, and it carries its own duty and GST.

Why the FCA exists

Power plants burn gas, coal, furnace oil and RLNG, and use hydel, nuclear and solar. The base tariff assumes a certain fuel cost for each month. When the real cost turns out higher or lower, the difference is charged or refunded to consumers later through the FCA. It is the same per unit for all government-owned distribution companies, including MEPCO.

Why your bill shows a past month

Actual fuel costs are known only after a month ends. The power purchaser files the claim, NEPRA holds a hearing and issues a decision, and the adjustment is then billed. That is why an adjustment for one month usually appears on a bill a couple of months later. Your bill’s note area often says which month’s FCA is included.

How it appears on a MEPCO bill

The bill shows a Total FPA figure, and the charges detail breaks it down:

FPA line Meaning
FPA_ENERGY Units × the FCA rate per unit
ED Electricity duty on the FPA
GST Sales tax on the FPA
IT / FTAX / ETAX Income or further taxes where they apply

On one real protected-home bill the FPA energy part was Rs 100.85, with Rs 1.51 duty and Rs 19 GST, giving a total FPA of Rs 121.36.

Is FCA charged on the units of an earlier month?

The per-unit FCA rate relates to an earlier month’s fuel cost, and is applied according to NEPRA’s decision. Read the note on your bill and NEPRA’s decision for the exact basis in a given month.

Can you reduce the FCA?

Not directly, since it is decided nationally. But because it is charged per unit, using fewer units reduces it. Keeping within protected slabs and avoiding heavy evening use helps your whole bill. Try different numbers in the bill calculator (enter the FCA rate if you know it).

Frequently Asked Questions

What is FCA in a MEPCO bill?

FCA, or fuel charges adjustment, is shown as FPA on MEPCO bills. It adjusts your bill for the difference between the reference and actual fuel cost of electricity in an earlier month.

Who decides the fuel adjustment?

NEPRA decides it after a public hearing on the claim filed for the distribution companies.

Can FCA be negative?

Yes. When actual fuel costs were lower than assumed, the adjustment is a refund and reduces the bill.

Is GST charged on FCA?

Yes. MEPCO bills show separate duty and GST on the fuel price adjustment.

Official sources

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