Power Division wants electricity tariff revised for poorest consumers

The new tariffs come into effect from this month

A day after Bangladesh's power regulator approved higher electricity tariffs across all consumer categories, the Power Division has moved to shield low-income households, seeking a review of the new rates imposed on marginal users.

In a letter to the Bangladesh Energy Regulatory Commission (BERC) on Thursday, the Power Division said the price hike did not reflect the marginal consumer prices proposed by the Bangladesh Power Development Board (BPDB).

The Power Division also highlighted the potential “pressure” on low-income people due to the new tariffs, according to a media statement.

The new decision announced on Wednesday pushed up the electricity price for residential customers in all tranches. Among them, the price of electricity per unit for lifeline or marginal customers using 0 to 50 units has increased from Tk 4.63 to Tk 5.32.

In this tranche, the price per unit jumped by Tk 0.69 or 14.90 percent.

The new tariffs will be effective this month.

The Power Division fears that the new tariffs will result in a “significant increase” in electricity costs for marginal consumers, especially low-income and lower-middle-class families, which could negatively impact their livelihoods.

It is optimistic that the BERC will take necessary steps to address the issue.

During a two-day public hearing last month, the BPDB proposed setting the price of electricity to Tk 4.95 per unit for marginal consumers.

Accordingly, it sought an increase of Tk 0.32 per unit, or about 7 percent.

In the final decision, the BERC fixed a higher price than the BPDB's proposal.

While citing the need for price adjustment to reduce the gap between production costs and sales revenue, the BPDB had proposed to take into account the protection of low-income consumers.