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Decoding the FAC—A Mysterious Element of Your Electricity Bill

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By uday

The recent hike in fixed charges and fuel cost adjustment charges (FAC) or Fuel and Power Purchase Cost adjustment Charges(FPPCA) in electricity bills has left consumers in shock. In our case, HESCOM in Belagavi has implemented these changes, resulting in a significant increase in bills for the month of May. The fixed charges have increased for all categories, and the FAC has seen a massive jump from an average of 0.57 to 2.55 per unit.

It’s important to understand that the energy charge is the primary component of the bill, which includes the cost of fuel, generation and transmission, distribution charges, and the profit of the generators.

In Karnataka, the Karnataka Electricity Regulatory Commission (KERC) sets this charge. Power suppliers calculate the energy charge based on the various slabs at which consumers are charged.

In addition to the energy charge, consumers also have to pay a fixed charge, which is similar to a service charge. This charge varies based on consumption, with commercial and residential consumers in the LT2a category having to pay a higher fixed charge due to their higher consumption.

uel cost adjustment charges (FAC) or Fuel and Power purchase Cost adjustment Charges(FPPCA)

The KERC revises the power tariff structure whenever the cost of fuel, such as coal and natural gas, fluctuates in the international market. This charge, known as the fuel adjustment charge (FAC), is added to the energy charge and changes every month based on fuel prices.

It’s important for consumers to be aware of these charges and how they are calculated to better understand their electricity bills.

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