Understanding Monthly Fuel Price Adjustment (FPA) Changes & Verification
Why does your MEPCO bill include an FPA charge? Discover how fluctuating generation fuel prices lead to monthly bill adjustments approved by NEPRA.
What is Fuel Price Adjustment (FPA) & Why is it Charged?
Pakistan relies on a mix of energy sources to generate electricity—including hydel, nuclear, RLNG (Regasified Liquefied Natural Gas), residual fuel oil (RFO), coal, and solar/wind. Baseline electricity tariffs incorporate a fixed "reference fuel cost."
However, global prices of imported coal, crude oil, and natural gas fluctuate constantly. When actual fuel expenses incurred by power generation companies in a given month exceed or fall below the reference cost, NEPRA evaluates the difference and issues a Fuel Price Adjustment (FPA) determination.
How FPA is Calculated and Applied to Billing Cycles
FPA adjustments operate on a two-month billing lag due to data collection and audit workflows:
Example Billing Lag Timeline
- May Generation: Central Power Purchasing Agency (CPPA-G) collects actual fuel cost data for electricity generated in May.
- June NEPRA Hearing: CPPA-G files a petition for May FPA. NEPRA conducts a public hearing and issues a written determination.
- July MEPCO Bill: The approved per-unit FPA rate is applied to electricity consumed in your July billing cycle (or August bill depending on issue date).
FPA is multiplied directly by the units (kWh) consumed during the relevant billing period. For detailed definitions of other line items, see our MEPCO Bill Glossary.
Positive FPA Surcharge vs. Negative FPA Refund
Positive FPA (Surcharge)
Occurs when actual generation fuel costs were higher than the reference price. Appears as an additional charge added to your total monthly bill.
Negative FPA (Relief / Refund)
Occurs when cheap hydel generation increased or global fuel prices dropped below reference rates. Appears as a credit deduction reducing your total bill.
How to Verify This on Your Own MEPCO Bill
- Open your duplicate invoice on our MEPCO Bill Check Portal.
- Locate the line labeled FPA / Fuel Adjustment in the middle calculation box.
- Note the billing month referenced next to the FPA line item.
- Use our MEPCO Bill Calculator to calculate taxes associated with FPA and base energy charges.
Need to check your current MEPCO bill online?
Enter your 14-digit reference number to inspect your live duplicate invoice.