"Ft", the Reason of Expensive Electricity Bills

The reason many households face high electricity bills during this hot season is due to the Fuel Adjustment Factor (Ft) or variable electricity tariffs.

This variable electricity tariff fluctuates based on changes in the costs associated with fuel and electricity procurement, beyond the control of the utility provider.

The Ft is recalculated and adjusted every four months based on two main factors:

1. Fuel costs, which vary according to the fuel price situation.

2. Readiness costs, or electricity reserve costs, estimated based on peak electricity usage predictions.

This means that even if our electricity consumption remains the same, we may have to pay higher electricity bills if there is an upward adjustment in the Ft.