FAC / FPPCA on your electricity bill, explained

Fuel Adjustment Charge (FAC), also called Fuel & Power Purchase Cost Adjustment (FPPCA), is a per-unit charge that reflects the actual fuel cost DISCOMs incur month to month. Since coal, gas, and imported LNG prices fluctuate, DISCOMs are allowed to pass these changes through to you via FAC.

Why does FAC exist?

Tariffs are fixed by SERCs for the year, based on assumed fuel costs. If the actual cost is higher or lower, the DISCOM either loses money or over-recovers. FAC closes that gap — monthly (some DISCOMs) or quarterly (others).

How is FAC calculated?

FAC (₹/unit) = (Actual fuel cost − budgeted fuel cost) ÷ units sold. Published by your DISCOM/SERC every billing period.

Can FAC be negative?

Yes. If fuel prices drop below budget, FAC can be negative — a small credit on your bill. It's rare but it happens.

How big is FAC typically?

In 2025–26, FAC ranges from ₹0.00 (many states reset it for domestic) to ₹0.40+/unit (some DISCOMs). On a 300-unit bill that's ₹120 of variation.

Our calculator pulls the latest published FAC for each DISCOM. If you want to model a specific month, override it in "Meter Reading" mode after computing energy charges.