All of these terms are used to refer to a change made to the price of electricity or natural gas based on changes in the market price of the fuel. Fuel adjustments act as a form of protection against sharp rises or decreases in the cost of fuel, and they protect both the utility and the consumer. Where fuel adjustment policies apply, customer billings aren't usually adjusted for a period of one month to a year after a change is made.

A fuel adjustment charge is a surcharge added to compensate for increases, usually unanticipated, in the price of energy.

A fuel adjustment clause is a term used in customer energy contracts that permits the utility to modify its energy rates to coincide with changes to the cost of energy to the utility. These clauses usually provide for price decreases as well as price increases.

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