BERC restores previous electricity tariffs for lifeline consumers, households using up to 75 units
Under the restored tariff structure, lifeline consumers using up to 50 kWh a month will continue to pay Tk4.63 per unit, while consumers using up to 75 kWh will pay Tk5.26 per unit, in line with the tariff adjustment made in February 2024
The Bangladesh Energy Regulatory Commission (BERC) today (4 June) has restored previous electricity tariffs for residential lifeline consumers and households using up to 75 units of electricity per month, a day after announcing a nationwide power tariff hike.
The move came following a formal request from the Power Division, which argued that the revised tariff would place an additional burden on low-income and lower-middle-income households.
BERC has already issued a notification on its website revising the tariff structure for consumers using up to 75 kilowatt-hours (kWh) of electricity per month.
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Under the restored tariff structure, lifeline consumers using up to 50 kWh a month will continue to pay Tk4.63 per unit, while consumers using up to 75 kWh will pay Tk5.26 per unit, in line with the tariff adjustment made in February 2024.
BERC Chairman Jalal Ahmed confirmed that the Bangladesh Power Development Board (BPDB) had submitted an application on behalf of all power distribution utilities seeking withdrawal of the tariff increase for the two consumer categories.
"BPDB has requested the commission to reconsider the tariff for these consumers. We are discussing the matter with all distribution companies and a decision will be announced soon," he told reporters.
In a press release, the division said the revised retail electricity tariff announced by the regulator did not reflect the proposal submitted by the Bangladesh Power Development Board (BPDB) for marginal or lifeline consumers.
According to the statement, the new tariff structure is likely to significantly increase electricity costs for lifeline users, particularly lower-income and lower-middle-income families, thereby adding pressure to their overall cost of living.
The request comes days after BERC revised wholesale, transmission and retail electricity tariffs following public hearings held on 20 and 21 May on proposals submitted by power distribution utilities.
Under the latest revision, BERC increased the tariff for residential lifeline consumers using up to 50 units of electricity per month by 14.9%, raising the rate from Tk4.63 to Tk5.32 per unit.
The Power Division noted that the government has been implementing various initiatives aimed at improving the living standards of low-income and lower-middle-income households. It said the revised lifeline tariff appears inconsistent with those policy objectives.
As a result, the division has formally written to BERC, requesting the regulator to reconsider the tariff and revise it in line with the proposal submitted by BPDB on 3 May.
"Considering the potential hardship for marginal consumers, the Power Division has requested BERC to review the revised tariff and redetermine the lifeline rate based on BPDB's proposal," the statement said.
The division expressed hope that the regulator would take prompt action on the matter.
The development highlights growing concern within the government over the impact of the latest tariff adjustment on vulnerable consumers, even as authorities seek to improve the power sector's financial sustainability through tariff rationalisation.
Yesterday, BERC increased retail electricity tariffs by an average of 16.68%, raising the rate by Tk1.52 per unit. The regulator also revised bulk and transmission tariffs as part of the latest adjustment.
