BERC Rolls Back Power Price Hike for Lifeline Users, Relief for Low-Income Households

In a move aimed at easing the burden on low-income families and marginal electricity consumers, the Bangladesh Energy Regulatory Commission has withdrawn the recently announced electricity tariff increase for lifeline and first-tier residential customers. As a result, millions of households with limited electricity consumption will continue to enjoy power services at the previous rates, avoiding additional financial pressure.

According to a notification issued by the commission on Thursday, June 4, the decision was taken following a review of tariff proposals submitted by electricity distribution utilities and companies. Under the revised decision, the recently announced higher rates will no longer apply to residential lifeline consumers and first-tier residential customers consuming up to 75 units of electricity per month.

Under the latest directive, consumers using between 0 and 50 units of electricity under the lifeline category will continue to pay Tk 4.63 per unit. Similarly, residential customers consuming up to 75 units will continue to be charged Tk 5.26 per unit. In the tariff structure announced on June 3, these rates had been increased to Tk 5.32 and Tk 6.18 per unit, respectively.

BERC stated that retaining the previous tariff rates for these two customer categories will reduce the projected revenue of electricity distribution companies, requiring the government to provide additional subsidies to offset the shortfall. However, the commission emphasized that the measure was necessary to protect low-income consumers.

Following the announcement of the new electricity tariffs earlier this week, concerns emerged among various stakeholders regarding the impact on marginal and low-income households. Taking those concerns into account, the Bangladesh Power Development Board requested that the existing tariff structure for lifeline and first-tier consumers be maintained. The commission subsequently reviewed the matter and revised its decision within a day.

BERC clarified that the electricity tariffs announced on June 3 for other residential categories, as well as commercial, industrial, and other consumer groups, will remain unchanged. Therefore, only marginal and low-consumption residential customers will benefit from the rollback.

Energy and power sector analysts noted that lifeline tariffs are an important component of social protection policy, as a significant portion of low-consumption households belong to lower- and middle-income groups. Maintaining the previous rates for these consumers is expected to provide some relief amid ongoing inflationary pressures.

It is worth noting that BERC announced new wholesale and retail electricity tariffs on June 3, with the revised rates scheduled to take effect from June 1. However, after considering the potential impact on vulnerable consumers, the commission amended the tariff structure just one day later and reinstated the previous rates for lifeline and first-tier residential users.

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