BERC withdraws electricity price hike for low-use residential consumers

Bangladesh Energy Regulatory Commission (BERC) has withdrawn its electricity tariff hike for lifeline residential users -- low-income or marginal consumers -- just a day after announcing the increase, keeping the previous rates unchanged from the June billing month.

In an order issued today, the regulator said the revised tariffs announced on June 3 for lifeline residential consumers using 0-50 units and first-slab residential consumers using 0-75 units would no longer take effect.

Under the latest decision, the lifeline tariff will remain at Tk 4.63 per kilowatt-hour (kWh), instead of rising to Tk 5.32 per kWh. Similarly, the first residential slab tariff will stay at Tk 5.26 per kWh, instead of increasing to Tk 6.18 per kWh.

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BERC said the decision followed applications submitted today by power distribution utilities seeking a review of the newly announced rates. In addition, the Power Division asked for a revision for low-income or marginal consumers.

As a result, the weighted average retail electricity tariff will fall by Tk 0.23 per unit from the rate announced yesterday, bringing it down from Tk 10.63 per kWh to Tk 10.40 per kWh, the new order said.

BERC noted that keeping the lower tariffs unchanged would reduce the revenues of power distribution companies and the shortfall would have to be compensated through additional government subsidies.

The decision comes a day after BERC raised electricity tariffs at wholesale, transmission and retail levels, increasing the weighted average retail tariff by 16.68 percent, from Tk 9.11 per kWh to Tk 10.63 per kWh.

In yesterday's order, even lifeline consumers were brought under the tariff hike, drawing criticism from consumer groups and energy experts. The increase would have affected around 1.62 crore lifeline customers, according to information presented during the tariff proceedings.

The tariff adjustments followed applications submitted in early May by the Bangladesh Power Development Board and power distribution companies, with public hearings held on May 20-21. Consumer representatives opposed the proposed increases during the hearings and urged the authorities to address inefficiencies and reduce system costs before imposing additional burdens on consumers.

Despite today's revision for low-consuming residential users, the tariff hikes for other consumer categories remain in force from the June billing month.