What is FPA in electricity bills?
FPA (Fuel Price Adjustment) is a monthly surcharge or credit applied by NEPRA to account for changes in fuel costs used for electricity generation. When fuel costs rise, FPA adds to your bill; when they fall, it may reduce your bill.
How is FPA calculated?
NEPRA calculates FPA by comparing the actual fuel cost of power generation with the reference fuel cost built into the base tariff. The difference per unit is then applied to your bill as an adjustment.
Can FPA reduce my bill?
Yes. When actual fuel costs are lower than the reference rate, FPA becomes negative (a credit), which reduces your total bill. This has happened in months with favorable fuel market conditions.
Why does FPA vary every month?
Because fuel prices (oil, gas, coal, RLNG) change monthly based on international markets and the electricity generation fuel mix. NEPRA recalculates the adjustment each month based on these changes.