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:
C x (A-B)D
Where:FCAF = Fuel Cost Adjustment Factor commonly referred to as Fuel SurchargeA = 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
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