New Electricity Tariffs Effective from June in Bangladesh

Electricity consumers in Bangladesh are set to face increased utility expenses immediately following the Eid-ul-Adha holidays. The Bangladesh Energy Regulatory Commission (BERC) is scheduled to announce a revised retail price structure for electricity shortly. According to relevant administrative sources, retail electricity prices are projected to rise by an average of up to 20 per cent, with the new tariff structure scheduled to take effect from the month of June.

Despite the broader tariff escalation, the specific “lifeline” category reserved for low-income households will remain unaltered for the time being. Consumers utilizing between zero and 75 units of electricity will continue to benefit from the existing subsidized rates without any structural adjustment.

An official from the BERC confirmed that all necessary technical and bureaucratic preparations for the price rationalisation were finalized prior to the Eid holidays. The regulatory body is currently waiting to make the formal public announcement, with strategic plans firmly in place to enforce the newly adjusted rates starting from June.

The initiative to adjust electricity pricing forms part of the mandatory structural conditions tied to the loan agreement between the Government of Bangladesh and the International Monetary Fund (IMF). To oversee this fiscal alignment, a specialized cabinet committee was established two months ago under the leadership of Finance Minister Amir Khosru Mahmud Chowdhury. The committee formally recommended an increase ranging from BDT 1.00 to BDT 1.50 per unit of electricity, whilst advising that the final pricing mechanism be instituted through the statutory framework of the BERC.

In anticipation of the adjustments, the BERC convened a comprehensive two-day public hearing on 20 and 21 April to evaluate the tariff modification proposals. During these sessions, six state-authorised power distribution companies submitted formal petitions seeking price increments ranging from 85 Poisha to BDT 2.05 per unit.

The specific rate increases requested by the individual utilities include the Power Development Board (PDB) at 85 Poisha, the Rural Electrification Board (REB) at BDT 1.77, the Dhaka Power Distribution Company (DPDC) at BDT 1.54, the Dhaka Electric Supply Company (DESCO) at BDT 1.98, the West Zone Power Distribution Company (WZPDCO) at BDT 1.39, and the Northern Electricity Supply Company (NESCO) at BDT 2.05 per unit.

Following a rigorous review of these submissions, the Technical Committee of the BERC recommended an average upward adjustment of BDT 1.25 per unit across all distribution companies. Indications suggest that the Commission is highly likely to adopt this specific technical recommendation in its final executive order.

Speaking on the condition of anonymity, a BERC Commissioner stated that the definitive ruling would meticulously integrate opinions from all participating stakeholders. However, the Commissioner clarified that the net increase would not fall below BDT 1.00 per unit. Furthermore, a progressive pricing model will be implemented: consumers using up to 200 units will encounter a relatively minor increase, whereas higher consumption brackets—specifically 200 to 400 units and 400 to 600 units—will experience staggered, steeper increments. The most substantial financial impact of this tariff revision will be borne by consumers exceeding 600 units of monthly usage.

The proposed tariff adjustments by the respective distribution companies alongside the evaluation of the BERC Technical Committee are summarized in the table below: