How FPPA (Fuel Surcharge) Is Calculated on Your Electricity Bill

6 min read · Updated 21 July 2026

FPPA (Fuel Surcharge) is a line on your electricity bill that changes every month. It covers the changing costs of coal and gas used to generate your electricity. Sometimes it's an extra charge, and sometimes you actually get a discount! It might also be called FPPCA, FAC, or PPAC depending on where you live.

1. Why is this on my bill?

Think of the fuel surcharge airlines add to a ticket when jet fuel gets costly — FPPA is the same idea for electricity. Your main electricity rates are fixed once a year, but the cost of the coal and gas used to make your power changes every month. FPPA is the small monthly adjustment that covers this gap — up when fuel gets costlier, and down (a discount!) when it gets cheaper.

2. Where to find it on your bill

Look in the charges table, just below the energy and fixed charges. The name varies by state — FPPA, FPPCA, FPPAS, FAC or PPAC — but it is always the same thing:

A sample bill. Notice the order: FPPA is added first, and electricity duty is then charged on the total including FPPA.

3. How it is calculated — two ways

Depending on your state, your electricity company uses one of two methods:

1Per unit

A few paise added (or subtracted) for every unit you used. Common in Maharashtra, MP, Rajasthan and most states.

Example200 units × ₹0.50 = ₹100 extra that month

2Percentage

A small percentage added on top of your main charges. Used in UP (FPPA) and Delhi (PPAC).

Example₹3,525 charges × 5% = ₹176.25 extra that month

4. Three things worth knowing

  • It changes every month or quarter. So don't compare this line with last month's — compare it with your electricity company's officially announced rate.
  • It can be negative. If power was cheap to produce, the line becomes a credit and your bill goes down. A minus sign here is good news, not an error.
  • Tax is charged on it too. As the sample bill above shows, electricity duty is calculated after FPPA is added — so a higher FPPA also nudges your duty up slightly.

5. Check it yourself in 3 steps

  1. Find the FPPA / FPPCA / FAC / PPAC line on your bill (see the sample above).
  2. Look up this month's official rate on your electricity company's website.
  3. Enter your units in our bill calculator — it applies the right method for your state automatically and shows whether your total matches.

Something doesn't add up? Upload your bill to our free expert Bill Review and we'll check the FPPA line for you.

Frequently asked questions

What is FPPA on an electricity bill?
FPPA (Fuel and Power Purchase Adjustment) is a surcharge that passes the difference between the DISCOM’s actual power-purchase cost and the cost assumed in the tariff order through to consumers. It appears as FPPA, FPPCA, FPPAS, FAC or PPAC depending on the state, and is revised monthly or quarterly.
Can FPPA be negative?
Yes. When the DISCOM buys power cheaper than the tariff order assumed — or when an earlier over-recovery is trued up — the adjustment becomes a credit and reduces your bill for that month.
Is FPPA charged before or after electricity duty?
Before. FPPA is added to the energy and fixed charges first, and electricity duty is then calculated as a percentage of that larger base — so a higher FPPA also slightly raises your duty.
Why is my FPPA different from my neighbour’s in another state?
Each state regulator notifies its own mechanism (per-unit or percentage), its own rates and its own revision cycle, and in multi-DISCOM states the rate can differ by DISCOM too — Delhi’s PPAC, for example, is separately approved for BRPL, BYPL and Tata Power-DDL.

Now check your own bill

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General guidance based on publicly available tariff orders and regulations; specifics vary by state, DISCOM and consumer category. Verify against your DISCOM's official schedule or your printed bill.