The Fuel Adjustment Rate (FAR) is used by the electricity company to recover the costs of fuel incurred in electricity generation and is a pass-through to the customer of all reasonably incurred costs.
The Authority reviews and approves the FAR monthly. However, in developing a Retail Tariff Methodology, the Authority is also revising the way the Fuel Adjustment Rate is calculated.
According to the law, (Electricity Act 2016), the TD&R Licensee is entitled to generate a total revenue that recovers reasonable costs of service incurred in achieving the service standards and, in particular, the reasonable costs in respect of fuel procured for generation and other costs.
As the Authority continues this important work, the public will be regularly updated