Increase in Electricity Bills Due to Fuel Surcharge Adjustments (FSA)

Many people in the city are surprised with the sudden rise in their monthly electricity bills since the month of July this year. This is because of the Fuel Surcharge Adjustment (FSA) made by the electricity board. Let us look into this topic to know the details.

What is Fuel Surcharge Adjustment (FSA)?
Fuel Surcharge Adjustment (FSA) is the additional amount paid by the power distribution companies to the generators to buy power. But, since April 2009 the discoms are not collecting the additional charges from the consumers. So, to cover that loss during those years some amount in the name of FSA is being adjusted in the monthly electricity bills for the next 12 months starting June 2012 to July 2013.

How is FSA calculated?
FSA is calculated based on the monthly consumption of the consumer during the period April 2009 to May 2012. The FSA rate (Paise /kWh) for every month (from April’09-May’10) has been pre-defined by the Andhra Pradesh Electricity Regulatory Commission (APERC). That rate will be multiplied by a consumer’s total usage during that month and will be added as FSA in every month’s bill starting June 2012.

Before going to the calculation part, let’s look at the FSA rates and schedule for the year 2009-10

Month of Consumption for which FSA is Charged

FSA Rate (Paise /kWh)

To be collected along with monthly bill of

April 2009


July 2012

May 2009


August 2012

June 2009


September 2012

July 2009


October 2012

August 2009


November 2012

September 2009


December 2012

October 2009


January 2012

November 2009


February 2012

December 2009


March 2012

January 2010


April 2013

February 2010


May 2013

March 2010


June 2013


Let’s see the calculation:
For example, if you consumed 100 units of electricity in the month of April 2009, your FSA will become 100 X 42.55 paise which equals Rs. 425.5. This FSA will get added to your June 2012 month bill which you will get in July 2012. Similar calculation will be applicable to the rest of the months based on the FSA rate and the units consumed in that year.

As the FSA adjustment is made for the four quarters of fiscal year 2009-10, the FSA rate remains constant for three months and changes every fourth month.

These FSA charges are applicable to all consumers (except LT Agriculture consumers) for the year 2009-10 on monthly basis as shown in the table above.

5 comments for “Increase in Electricity Bills Due to Fuel Surcharge Adjustments (FSA)

Comments are closed.