What is FPA in GEPCO Bill?

GEPCO (Gujranwala Electric Power Company) plays a major role in providing electricity to its customers. If you are a GEPCO customer, you might have noticed the term “FPA” on your electricity bill.

In this article, we will cover in detail the FPA, its calculation, and how it affects your total GEPCO bill. This guide will help you understand this important component of your monthly bill statement.

FPA in GEPCO Bill

What Does FPA Stand For?

In GEPCO electricity bills, FPA stands for Fuel Price Adjustment. This is an additional charge that is included in your monthly Gepco bill to adjust the changes in the cost of fuel used to generate electricity.

FPA aims to shield consumers from sudden changes in electricity prices caused by variations in fuel costs.

How Is FPA Calculated?

There are several steps involved in the calculation of FPA. The Fuel Information Price List (FIPL) published by the National Transmission and Dispatch Company (NTDC) serves as a reference for determining the FPA.

This list contains information about the fuel prices used in power generation plants, such as LDO, HSD, and Furnace Oil.

The Fuel Price Adjustment (FPA) is calculated by adding together the fuel charges of all power generation plants and obtaining a weighted average price per unit of fuel consumed. This, along with other operating charges, is referred to as Elementary Fuel Charges (EFC) per unit.

To recover these costs from customers, a surcharge known as the FPA is levied. The FPA is listed as a separate line item on your monthly bill, alongside other charges such as energy charges, monthly minimum charges, and adjusted energy surcharge.  

Factors Influencing FPA in Electricity Bills:

Several factors contribute to the variation in FPA charges on your Gepco electricity bill:

  • Dollar rate:  Changes in the dollar rate can have a significant impact on the cost of purchasing fuel for countries like Pakistan, which rely heavily on imported fuels. These fluctuations can also affect the FPA charges on electricity bills.  
  • Fuel prices:  The prices of natural gas, oil, and coal have a notable impact on the determination of the FPA. Depending on the fluctuation of these fuel costs, the FPA charges may either increase or decrease. 
  • Economic conditions:  Changes in a country’s economic stability can indirectly influence the prices of FPA. If a nation relies on imported fuels, economic factors can lead to fluctuations in fuel prices, which can in turn affect FPA charges.  

Calculating FPA in GEPCO Bill

To calculate the FPA, you will need the latest FPA rates and these rates vary each month. Moreover, you will get the FPA of the previous month in your latest bill.

So, you have to multiply your bill FPA rate by your total electricity consumption during the billing period

Make sure that the FPA rates will change from month to month. Therefore, it is crucial to carefully check your Gepco bill each month for any changes in the FPA rate.

Final Thoughts

FPA in GEPCO Bill accounts for fluctuations in the cost of fuel used for power generation. Its purpose is to shield consumers from sudden changes in electricity prices due to variations in fuel prices.  

To calculate FPA, you need to take into account the Fuel Information Price List (FIPL) published by the NTDC and then figure out the weighted average price per unit of fuel consumed.  

GEPCO, a responsible power distribution company, works to ensure transparent and fair billing practices. You can review your electricity bill and stay updated on any changes in the FPA rates.