Bangladesh Regulator Moves to Shield Low-Income Households from Latest Power Tariff Hikes

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The Bangladesh Energy Regulatory Commission (BERC) is poised to roll back recent electricity price hikes for low-income residential consumers just one day after the official announcement. The move follows a formal request from the Bangladesh Power Development Board (PDB), which petitioned the commission to exempt lifeline and first-tier customers from the tariff increase to ease the financial burden on marginalized households.

BERC Chairman Jalal Ahmed confirmed that the commission is actively reviewing the PDB’s appeal on behalf of all power distribution companies. Officials indicated that a formal decision regarding the reversal is expected to be issued as early as Thursday, following consultations with various stakeholders across the distribution sector.

The government had originally announced across-the-board price hikes on Wednesday, raising wholesale electricity prices by an average of 19.85 percent and retail rates by 16.68 percent, effective June. The initial decision drew immediate scrutiny for its impact on rural and low-income populations, including those in the “lifeline” category who consume 50 units or fewer per month.

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Despite the PDB’s initial proposal to spare lifeline consumers from the adjustment, the Rural Electrification Board (REB) had previously sought a rate increase that would have effectively generated an additional 7.81 billion taka annually from low-income users. Under the now-contested rates, lifeline consumers faced an increase of 69 paisa per unit, while the 0-75 unit tier faced a 92-paisa hike, collectively affecting approximately 65 percent of the nation’s total electricity customers.

Should the proposed revision be finalized, electricity rates for the lifeline category will revert to 4.63 taka per unit, while the first-tier usage bracket (up to 75 units) will return to 5.26 taka per unit. This potential intervention aims to shield the country’s most vulnerable economic segment from the inflationary pressures of the recent utility price restructuring.