Low-income households spared from power tariff hike
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) rolled back its newly announced electricity tariff hike for low-income and marginal households, keeping rates unchanged for residential consumers using up to 75 units a month.
The decision followed a formal letter from the Power Division to the BERC, sent just a day after the regulator had announced the nationwide price hike.
Under the restored tariff structure, lifeline consumers using up to 50kWh a month will continue to pay Tk4.63 per unit, while consumers using between 51 and 75kWh will pay Tk5.26 per unit, in line with the tariff adjustment introduced in February 2024.
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The regulator also issued a notification on its website, revising the tariff structure for consumers using up to 75 units (1 unit equals 1kWh) of electricity per month.
In its letter, the Power Division urged the BERC to review the re-determined tariff for marginal consumers in light of a proposal submitted by the Bangladesh Power Development Board (BPDB) on 3 May 2026.
It argued that the tariff increase would place an unfair financial burden on low-income and lower-middle-income households and undermine the government's efforts to improve the living standards of vulnerable consumers.
Earlier in the day, BERC Chairman Jalal Ahmed confirmed that BPDB had submitted an application on behalf of all power distribution utilities seeking the 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 today, the Power Division said the revised retail electricity tariff announced by BERC did not reflect the proposal submitted by BPDB for marginal and lifeline consumers.
According to the statement, the revised tariff structure was likely to significantly increase electricity costs for lifeline users, particularly lower-income and lower-middle-income households, adding further pressure to their cost of living.
Yesterday, BERC increased electricity tariffs across wholesale, transmission and retail levels following public hearings held in May. The regulator raised retail electricity tariffs by an average of 16.68%, equivalent to Tk1.52 per unit on a weighted average. The revised rates are to take effect from June's billing cycle.
Under the new tariff structure, residential lifeline consumers using up to 50 units a month saw their electricity rate rise by 14.9%, from Tk4.63 to Tk5.32 per unit. Consumers using up to 75 units per month faced an increase from Tk5.26 to Tk6.18 per unit.
The Power Division further said the government had been implementing a range of initiatives aimed at improving the living standards of low-income and lower-middle-income households and argued that the revised lifeline tariff was inconsistent with those policy objectives.
"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.
