Bangladesh Regulator Reverses Electricity Tariff Hike for Low-Income Users

The Bangladesh Energy Regulatory Commission (BERC) has withdrawn its recent electricity tariff hike for the country's lowest-income residential consumers, just a day after the increase was announced. This decision means previous rates will remain in effect for lifeline users consuming 0-50 units and first-slab users consuming 0-75 units, starting from the June billing cycle.

The regulator issued an order stating that the revised tariffs, announced on June 3, would no longer apply. For lifeline consumers, the tariff will stay at Tk 4.63 per kilowatt-hour (kWh), instead of the previously announced Tk 5.32 per kWh. Similarly, the first residential slab tariff will remain at Tk 5.26 per kWh, rather than increasing to Tk 6.18 per kWh.

BERC cited applications from power distribution utilities seeking a review of the new rates as the reason for the reversal. The Power Division also requested a revision for low-income or marginal consumers. Consequently, the weighted average retail electricity tariff will decrease by Tk 0.23 per unit from yesterday's announcement, settling at Tk 10.40 per kWh instead of Tk 10.63 per kWh.

This move comes after BERC had raised electricity tariffs across wholesale, transmission, and retail levels, marking a significant 16.68 percent increase in the weighted average retail tariff. The earlier decision to include lifeline consumers in the hike had drawn criticism from consumer groups and energy experts, as it would have affected approximately 1.62 crore customers. Consumer representatives had previously urged authorities to address inefficiencies and reduce system costs before imposing further burdens.