Ghost bills jolt REB consumers amid worsening load-shedding

Millions of electricity consumers, particularly those served by the Rural Electrification Board (REB), are facing a double whammy �" crippling load-shedding and unusually inflated power bills that far exceed their actual consumption.

Consumer rights advocates and energy experts allege that a nexus within the power distribution system is generating "ghost bills" to conceal system losses and boost revenue, leaving households and businesses to shoulder the burden.

Out of approximately 5 crore electricity consumers across six distribution companies, REB alone serves about 3 crore 80 lakh 58 thousand consumers. Among these, 55 lakh uses prepaid meters, where ghost billing is virtually impossible unless there is a meter defect. The vast majority is postpaid consumers, and this is where the manipulation primarily occurs. Most postpaid consumers fall under REB, which supplies power through 80 rural electrification cooperatives (Palli Bidyut Samities) nationwide.

To reduce system loss and increase revenue, the distributing agencies make the inflated bills, this is nothing new, they are practicing it for ages as there is pressure to boost revenue during the June closing period by reducing arrears, Dr. Ezaj Hossain of BUET has remarked.

“The distribution companies are making the consumer’s bill against their import of electricity from Bangladesh Power Development Board (BPDB), it means what the amount they are importing from BPDB that is their baseline, the total import is calculated from June to July, the distributing agencies were under pressure in May-June to make a clean sheet, which will help them to show that the company is free from excessive system losses caused by power waste and theft, this point is the main cause that pushes the consumers to get a bill paper which is not actual a fake one," Dr. Ezaj Hossain has said.

"Actually, it should be billed according to meter, that showed the use of electricity by a consumer," he added.

When distribution companies purchase power from the national grid and distribute it to consumers, some electricity is inevitably lost due to resistance in wires, transformers, and other equipment. This technical loss constitutes system loss, which is acceptable worldwide. However, system loss in Bangladesh's distribution companies-particularly REB-is significantly higher. In fiscal year 2024-25, REB's system loss stood at 8.51 percent, up from 8.16 percent the previous year. The higher the system loss, the greater the financial hit.

Mahbub Alam Lablu, a DESCO consumer in Shamim Sarani, Mirpur, Dhaka, saw his electricity bill rise from Tk 4,622 in May to Tk 6,963 in June. Lablu said his typical bill ranges between Tk 3,000 and Tk 3,500. The sudden surge in May and June was abnormal, especially since household usage remained unchanged.

A review of a bill for Autara Star Agro Processing Industries, under a Palli Bidyut Samity in BSCIC Industrial City, Moulvibazar, showed the factory's electricity bill was approximately Tk 43,000 in March. In April, it rose to Tk 1,06,000, and in May, it further increased to about Tk 1,20,000.

An official of the factory said that with relatively lower operations in April-May, the bill should have been lower than usual. Instead, it increased abnormally.

Tajul Islam Chowdhury, a resident of Gopalganj town and a consumer of West Zone Power Distribution Company Ltd (WZPDCO), said his typical monthly bill ranges between Tk 800 and Tk 1,000. But last month, he received a bill of Tk 1,811.

However, system loss in Bangladesh's distribution companies-particularly REB-is significantly higher. In fiscal year 2024-25, REB's system loss stood at 8.51 percent, up from 8.16 percent the previous year. The higher the system loss, the greater the financial hit.

Several Palli Bidyut Samity officials, speaking on condition of anonymity said that REB sets annual system loss reduction targets for each samity. If targets are not met, verbal instructions are sometimes given to inflate bills before the June closing. However, no written directive exists, making it difficult to gather concrete proof.

According to officials, the only way to reduce system loss then is to burden consumers with inflated bills. Some also resort to this tactic to gain favour with REB for promotions and salary increases.

They also revealed that in some cases, excess charges are adjusted from July onwards. However, the extra money lost due to slab changes resulting from inflated consumption is never refunded. As consumers move to higher slabs, the per-unit price increases accordingly.

One such case is Sylhet Palli Bidyut Samity-2. In June 2024, its system loss was 10.46 percent. A month later, in July, it jumped to 18.6 percent. The following year, June system loss was shown as 11.89 percent, only to rise to 21.16 percent in July.

In Chandpur Palli Bidyut Samity-1, system loss was recorded at 2.23 percent in June last year. The following month, it surged to 12.14 percent.

In Narsingdi Palli Bidyut Samity-1, June 2024 system loss of 4.98 percent nearly doubled to 9.85 percent in July. The next year, figures stood at 6.58 percent and 8.05 percent respectively.

In Manikganj Palli Bidyut Samity, system loss rose from 6.67 percent in June 2024 to 11.73 percent in July. The following year, June and July figures were 7.7 percent and 10.6 percent respectively.

In Chattogram Palli Bidyut Samity-3, June last year showed system loss at 3.65 percent. The very next month, it soared to 10.84 percent.
In Jashore Palli Bidyut Samity-2, June 2024 system loss of 9.41 percent increased to 12.36 percent in July. Last year, June and July system losses stood at 9.31 percent and 11.24 percent respectively.

REB officials stated that in addition to reducing system loss, REB also sets revenue collection targets by reducing arrears. Senior officials of some samities are compelled to inflate bills to meet these targets.

Meter readers prepare bills. They are hired on a contractual basis with relatively low salaries
Meter readers typically serve in an area for six months. When a new reader takes over, they visit all consumers for the first bill. Discrepancies arise when taking actual readings, and the impact is felt during June closing.

It is understood that a REB meter reader is usually responsible for preparing and delivering bills for 2,000 consumers per month. However, due to manpower shortages, they often have to handle 3,000 to 3,500 consumers, making it impossible to take actual readings every month. Additionally, allegations persist that officials exert unofficial pressure on meter readers to inflate bills by 10 to 40 percent during May-June. Similar complaints exist against other distribution companies as well.

Following complaints of excessive billing, the Power Division has ordered all distribution companies to investigate the matter. Consumers have been advised to lodge complaints at the respective distribution offices or through designated hotlines. The coordination is being handled by Mohammad Sanaul Haque, Additional Secretary (Coordination) of the Power Division. He told Agamir Samay that consumer complaints are being taken seriously. Distribution companies are working on the matter following directives, and further steps will be taken upon receiving their reports.

"Many are aware of this tactic to reduce system loss, but no action is taken. Instead of providing service, there is looting in the power sector. The entire system has been engulfed in a culture of dishonesty. As a result, people are not getting fair treatment in energy matters, Professor Dr. M. Shamsul Alam, Energy Adviser to consumer rights organisation CAB said. 

The power and energy sector needs major reform. That reform will happen when the people are empowered. But people's capacity to protest is diminishing day by day. Everyone is accepting everything. That, in fact, is the bigger crisis, he added.