The Bangladesh Energy Regulatory Commission's (BERC) latest electricity tariff hike is set to squeeze millions of the country's poorest households, generating an estimated Tk 781 crore annually from consumers originally promised subsidised 'lifeline' electricity.
The electricity bill for residential (lifeline) customers using up to 50 units has been increased by 15 per cent. The BERC officially announced this on Wednesday. As a result, the current per-unit rate will rise from Tk 4.63 to Tk 5.32 along with the amount of VAT (5 percent).
As per fresh tariff hike, customers who use a 30-watt light bulb and a fan for 10 to 12 hours a day fall under this billing category. Tk 781 crore will be collected annually. Along with this, the amount of VAT (5 percent) will also increase proportionally.
There are over 18.6 million lifeline customers across the country's six distribution companies. With a monthly bill increase of Tk 420 per customer (including the Tk 35 unit increase, though the article notes 'if the bill increases by 420 taka per month' - this figure may represent an annualized or calculated total), approximately Tk 781 crore will be collected annually. Along with this, the amount of VAT (5 percent) will also increase proportionally, BERC announced.
According to a June 2025 census, out of the 18.6 million lifeline subscribers, 87 percent are under the Rural Electrification Board, 4.5 percent under BPDB, 4 percent under NESCO, and 3 percent under Ojopadiko. The lowest number of lifeline subscribers is in the capital Dhaka, with 1 percent under DPDC (responsible for distribution there) and 0.5 percent under DESCO.
CAB's Energy Advisor Dr. Shamsul Alam said that the lifeline customers use an average of 35 to 40 units. Even at 69 paisa per unit, about Tk 616 crore will be pocketed annually. These bills are paid by beggars and the poorest families, who live hand-to-mouth. According to his calculations, they should be provided free electricity. As the bill increases, they may lose purchasing power.
However, if a household uses multiple fans or runs a fan continuously for 24 hours, it is less likely to remain within the lifeline bracket. Such customers then have to pay a different tier rate (up to 75 units), where electricity is comparatively more expensive.
"Lifeline customers" were established to serve the extreme poor, low-income, and disadvantaged sections of society. Customers who use a 30-watt light bulb and a fan for 10 to 12 hours a day fall under this billing category. However, if a household uses multiple fans or runs a fan continuously for 24 hours, it is less likely to remain within the lifeline bracket. Such customers then have to pay a different tier rate (up to 75 units), where electricity is comparatively more expensive.
Consequently, the monthly energy cost for each customer consuming 50 units will increase by approximately Tk 35, excluding VAT and other charges. BERC officially announced the new prices at 300 PM on Wednesday. Although Tk 35 per month may seem insignificant to many, it could represent an additional burden for low-income people, said Dr. Shamsul Alam, energy advisor to the Consumers Association of Bangladesh (CAB).
There are six additional residential consumption tiers beyond the lifeline rate. In those tiers, the comparative bill has increased even more. Currently, the first tier (75 units) is Tk 5.26 per unit; the second tier (76-200 units) is Tk 7.20; the third tier (201-300 units) is Tk 7.59; the fourth tier (301-400 units) is Tk 8.02; the fifth tier (401-600 units) is Tk 12.67; and the final tier (above 600 units) is Tk 14.61. The above rates apply to low-voltage category consumers, while separate rates exist for medium and high-voltage consumers.
For medium-pressure customers using between 50 kW and 5 MW, the flat rate has been increased to Tk 10.55, off-peak to Tk 9.50, and peak to Tk 13.29 per unit. The unit rate for agricultural irrigation was increased from Tk 4.82 to Tk 5.25 in 2024. For medium-pressure (11 kV) irrigation customers, the flat rate has been increased from Tk 5.79 to Tk 6.42, off-peak from Tk 5.77 to Tk 8.63, and peak from Tk 7.23 to Tk 8.06 per unit
Consequently, the monthly energy cost for each customer consuming 50 units will increase by approximately Tk 35, excluding VAT and other charges. BERC officially announced the new prices at 300 PM on Wednesday. Although Tk 35 per month may seem insignificant to many, it could represent an additional burden for low-income people, said Dr. Shamsul Alam, energy advisor to the Consumers Association of Bangladesh (CAB).
There are six additional residential consumption tiers beyond the lifeline rate. In those tiers, the comparative bill has increased even more. Currently, the first tier (75 units) is Tk 5.26 per unit; the second tier (76-200 units) is Tk 7.20; the third tier (201-300 units) is Tk 7.59; the fourth tier (301-400 units) is Tk 8.02; the fifth tier (401-600 units) is Tk 12.67; and the final tier (above 600 units) is Tk 14.61. The above rates apply to low-voltage category consumers, while separate rates exist for medium and high-voltage consumers.
