BERC withdraws electricity tariff hike for low-use residential consumers

The Bangladesh Energy Regulatory Commission (BERC) has withdrawn the recently announced electricity tariff increase for low-use residential consumers, following widespread criticism and a request from the Power Division to reconsider the decision.

The move came after concerns were raised about the impact of higher electricity prices on low-income households, particularly consumers in the Lifeline category and those using up to 75 units of electricity per month.

Earlier, the Bangladesh Power Development Board (BPDB), on behalf of power distribution companies, requested BERC to withdraw the tariff increase for consumers using up to 50 units and up to 75 units of electricity monthly.

These two categories account for around 65 percent of the country’s electricity consumers and largely consist of low-income and marginal households.

Following consultations with distribution companies and stakeholders, BERC decided to revoke the tariff increase for these consumer groups, providing relief from the price hike announced on June 3.

Under the original tariff order, consumers in the Lifeline category (up to 50 units per month) were set to pay an additional Tk0.69 per unit, while those consuming up to 75 units would have faced an increase of Tk0.92 per unit.

However, the revised decision means these consumers will continue paying electricity bills at the previous rates.

The broader tariff adjustment announced by BERC remains in effect for other consumer categories.

The average wholesale tariff was increased by 19.85 percent, from Tk7.00 per unit to Tk8.39 per unit, while the average retail tariff rose by 16.68 percent, from Tk9.11 to Tk10.63 per unit.

Transmission charges were also increased by nearly 24 percent.

The tariff revisions were proposed by BPDB, Power Grid Company Bangladesh and distribution utilities, which argued that rising fuel costs, higher generation expenses and reduced government subsidies had created significant financial pressure on the power sector.

A BERC technical committee estimated that the overall tariff adjustment could reduce government subsidy requirements by up to Tk13,000 crore in the next fiscal year.

Consumer groups and business representatives had strongly opposed the increase, warning that higher electricity costs would add pressure to households and businesses already struggling with inflation and rising living expenses.

The withdrawal of the tariff hike for low-use residential consumers is being viewed as a response to those concerns while allowing the broader tariff restructuring to remain in place.