What is FSA or Fuel Surcharge Adjustment?

FSA or Fuel surcharge adjustment is the additional fuel cost that was not collected from consumers by DISCOMs like APCPDCL, APEPDCL, APSPDCL and APNPDCL in the previous years. The monthly electricity bills of consumers that year did not cover the actual cost of fuel that distribution companies paid to generators to buy power. So, to make up for the loss that discoms suffered, sometimes it is allowed if the government and court allows to collect this money in coming years. Usually their is a lot of political involvement as they do not want to raise the price frequently so that they do not loose the vote bank but due to heavy losses by the discoms lead them to take tough decisions and implement the policy.