Govt Considers Scrapping Monthly Charges on Prepaid Electricity Meters

The government is considering withdrawing the monthly rent or meter charge on prepaid electricity meters. This indication was given by Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud Tuku while speaking to journalists on Sunday, 29 March.

He said, “There has long been a sense of discomfort and dissatisfaction among customers regarding the monthly charge on prepaid meters. We have closely monitored the issue. Our goal is to ensure a customer-friendly electricity service, and with that in mind, we are moving quickly to abolish this meter charge system.”

Currently, prepaid meters carry a monthly demand charge of Tk 42 per kilowatt and a meter rent of Tk 40 for single-phase connections. An additional 5 percent VAT is applied to these charges. In this context, many consumers have complained that the rent continues to be collected for years even after the cost of the meter has already been recovered. Demands to withdraw these charges have also intensified on social media and from various civic organizations.

The minister’s attention was drawn to the issue during a virtual roundtable meeting he joined from his residence, where he outlined the government’s position.

He said that the matter of monthly charges on prepaid meters is currently under review. Instructions have been given to examine how the monthly meter charges are determined. The software used in the meters has also been directed to undergo testing and evaluation.

The minister added that there has been long-standing dissatisfaction and frustration among general consumers over additional charges related to prepaid meters. Since assuming office, the issue has been closely monitored. As a result, the government is now considering completely abolishing the meter charge system to ensure maximum benefits for consumers.