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The Fuel Adjustment Charge (FAC), also known as Fuel Price Adjustment (FPA) or Fuel Cost Adjustment (FCA), is an extra charge (or credit) that K-Electric (KE) added or deducted from the monthly electricity bill for power consumers in Karachi.
The FAC reflects changes in the cost of power generation that independent power generation companies use to produce electricity.
Why does the fuel adjustment charge exist?
In order to generate electricity, power companies often depend on fossil fuels like coal, oil, gas, or even imported energy sources.
When the price of these fossil fuels changes – due to issues like international market, inflation, or supply chain – the cost of power production also increases or decreases.
Meanwhile, due to frequent fluctuation, the power utility companies recover these additional fuel charges under the account of fuel price adjustment (FPA) without changing the base tariff rate.
READ: How to report electricity theft in Karachi?
How to calculate Fuel Adjustment Charges?
The FCA is decided by NEPRA in account for the variation in fuel prices, and it directed the power companies to adjust the fuel cost in customers’ monthly bills.
The Fuel Adjustment Charges (FAC) or Fuel Price Adjustment (FPA) are usually calculated every month, depending on the power generation cost.
If the actual power generation cost is higher, the difference is charged to consumers by the utility companies.
If it’s lower, consumers may receive a credit or adjustment in the next month’s bill. (though this is less common).
How are average bills calculated?
In Karachi, average electricity bills are calculated by K-Electric (KE) based on your electricity usage, and if actual readings aren’t available, an “average bill” may be issued under certain conditions.
Average Bill (When Actual Reading is Not Taken)
If KE cannot take a meter reading due to access issues, meter fault, or technical reasons, they may issue an “average bill” to the consumer.
Based on the average consumption of the past 11 months, or sometimes based on the previous few months’ usage (for new connections only)
This is called “Provisional Billing”, and it’s legal under NEPRA regulations if justified by the power utility company.
Once the actual reading is taken again, any difference is adjusted in the next bill:
If you were overcharged, the excess is credited.
If you were undercharged, the shortfall is added.
Karachi residents can check the scheduled power outages for the next day by visiting the Times of Karachi dedicated power outage feeders page.
