KERC Reduces Fuel Adjustment Charge (FAC) to Zero

The Karnataka Electricity Regulatory Commission (KERC) in its new order has reduced the Fuel Adjustment charge (FAC)  to zero for all distribution companies (ESCOM’s) except MESCOM for the second quarter of the 2015 (i.e. Jan to March 2015).

The commission in its order stated that “The Commission, having recognized the decrease in fuel cost adjustment charges for all the ESCOMs except MESCOM in the second quarter of FY15 and the overall increase in power purchase cost, decides to allow all the ESCOMs except MESCOM to adjust the savings in FAC against the overall increase in power purchase cost”.

In the case of MESCOM, the commission has decided to allow collection of FAC to an extent of 1 paisa /unit during the billing quarter January – March 2015. Hence no FAC will collected from consumers of all ESCOM’s except MESCOM separately during January – March, 2015.

The commission in its previous order had calculated 1paisa/unit as FAC, which has now been reduced to zero for other ESCOM’s of Karnataka except MESCOM.

The order can be accessed here.