Fuel Cost Adjustment Factor (Fuel Surcharge)
The Fuel Cost Adjustment is a mechanism designed to recover the cost of fossil fuel oils used in the generation of electricity.
The Fuel Cost Adjustment Factor is structured as follows:
FCAF = C x (A-B)
D
Where:
FCAF = Fuel Cost Adjustment Factor commonly referred to as Fuel Surcharge
A = the current month’s average fuel price (EC$/IG)
B = the average fuel price at base tariff (EC$/IG)
C = Current Month’s fuel usage (IG)
D = Current Months Electricity Production (KWH)
Fuel Surcharge on bills = Total units consumed * FCAF