The National Electric Power Regulatory Authority (NEPRA) has officially approved an increase of Rs 0.75 per unit (kWh) on account of monthly Fuel Charges Adjustment (FCA) for power consumed in June 2026, which will be billed to consumers in their August 2026 IESCO electricity bills.
If your latest IESCO duplicate bill shows a higher payable amount despite similar or lower unit consumption, the primary driver is this newly approved fuel price adjustment. In this comprehensive explainer, we walk through why the hike occurred, which consumer categories are affected, how the charge is calculated, and where it appears on your physical and online electricity bill.
Why Did NEPRA Approve the Rs 0.75/Unit FCA Hike?
Under NEPRA’s regulatory framework, power distribution companies (DISCOs like IESCO) collect a predetermined reference fuel cost embedded in the base tariff. When the actual fuel cost incurred by generation companies (GENCOs and IPPs) during a specific month exceeds the reference tariff—due to higher imported coal prices, RLNG price adjustments, or temporary changes in the hydel-to-thermal generation mix—the difference is recovered from consumers via the monthly Fuel Charges Adjustment.
The Central Power Purchasing Agency (CPPA-G) had originally petitioned for a higher adjustment; however, after public scrutiny and technical evaluation of generation efficiency and merit order dispatch, NEPRA determined the allowable adjustment at Rs 0.7504 per kilowatt-hour (kWh).
Which Consumers Are Affected by This FCA Hike?
The Rs 0.75/unit FCA adjustment applies to nearly all consumer categories connected to the IESCO distribution network, with specific regulatory exemptions:
Applicable To:
- Non-Protected Residential Consumers (consuming over 200 units).
- Commercial Connections (Shops, Malls, Offices under Tariff A-2).
- Industrial Connections (General Industrial Tariff B-1, B-2, B-3).
- Bulk Supply and Temporary Connections.
Exempted Categories:
- Protected Residential Consumers (under 200 units consistently for 6 months).
- Lifeline Consumers (consuming under 50 units/month).
- Electric Vehicle Charging Stations (EVCS) under specific tariffs.
Financial Impact: How Much More Will You Pay?
To understand how this adjustment translates into rupees on your August electricity bill, here is a calculation model for various monthly consumption levels:
| Monthly Units (kWh) | Base FCA Amount (Rs 0.75/unit) | 18% GST on FCA | Total Additional Impact |
|---|---|---|---|
| 200 Units (Non-Protected) | Rs 150.00 | Rs 27.00 | Rs 177.00 |
| 300 Units | Rs 225.00 | Rs 40.50 | Rs 265.50 |
| 500 Units | Rs 375.00 | Rs 67.50 | Rs 442.50 |
| 700 Units | Rs 525.00 | Rs 94.50 | Rs 619.50 |
| 1,000 Units (High Residential) | Rs 750.00 | Rs 135.00 | Rs 885.00 |
* Note: General Sales Tax (GST) of 18% and applicable Electricity Duty are automatically levied on all variable tariff components including FCA.
Where Does FCA Appear on Your IESCO Bill?
On your printed bill stub or online duplicate PDF generated from the PITC portal, look at the right-hand column titled "Bill Calculation / Charges Breakdown". You will locate a dedicated row labelled "F.P.A." or "Fuel Charges Adjustment".
For a line-by-line guide explaining all surcharges (FC Surcharge, TV Fee, Electricity Duty, QTA), visit our detailed Understanding Your IESCO Bill Guide.
To compute your exact estimated bill with current base tariffs and taxes, use our interactive IESCO Bill Calculator.