The Power Division has formally requested the Bangladesh Energy Regulatory Commission (BERC) to reconsider the newly announced electricity tariffs in order to reduce the additional burden on marginal and low-income consumers. It believes that the new tariff rate set for lifeline consumers is not fully consistent with the government’s social protection policy.
The information was disclosed in a press release issued by the Ministry of Power, Energy and Mineral Resources on Thursday.
According to the statement, BERC recently revised wholesale, transmission, and retail electricity tariffs following public hearings held on proposals submitted by electricity distribution companies. However, the special tariff rate proposed by the Bangladesh Power Development Board (BPDB) for lifeline consumers was not reflected in the newly approved tariff structure.
The Power Division hopes that BERC will promptly take steps to review the lifeline tariff, taking into account the interests of marginal consumers and the government’s social protection programs. Such a move would provide some relief to millions of low-income consumers.
Under the new tariff announced on Wednesday, the electricity price for residential lifeline consumers has been increased from Tk 4.63 per unit to Tk 5.32 per unit. Consumers using up to 50 units of electricity per month fall under this category. As a result, the tariff has risen by 69 paisa per unit, or approximately 15 percent.
According to the Power Division, Bangladesh currently has 17,882,380 lifeline consumers. Of these, 16,147,591 connections are under the Rural Electrification Board (REB) and its affiliated cooperatives. The government has long been supplying electricity at subsidized rates to improve the education, healthcare, and living standards of marginal communities.
Under the new tariff, consumers are required to pay not only the increased energy charge but also demand charges, meter rent, and value-added tax (VAT). Consequently, a lifeline consumer using the maximum 50 units of electricity may see their monthly bill increase by around Tk 37.
The Power Division believes that such a price hike will increase financial pressure on low-income and lower-middle-income households and negatively affect their standard of living. Therefore, it has sent a letter to BERC requesting a revision of the lifeline tariff in line with the proposal submitted by BPDB on May 3.
While announcing the new tariffs, BERC stated that the wholesale electricity tariff had been increased from Tk 7.00 per unit to Tk 8.39 per unit, a rise of Tk 1.39 or 19.85 percent.
Meanwhile, the average retail electricity tariff has been raised from Tk 9.11 per unit to Tk 10.63 per unit. This represents an increase of Tk 1.52 per unit, or 16.68 percent.