Thousands of households in Bangladesh are breathing a sigh of relief after the Bangladesh Energy Regulatory Commission decided to revoke its decision to increase electricity tariffs for low-consumption residential users, just hours after announcing it. With this, the BERC decision guarantees that residential consumers who use electricity within the range of 0 to 75 units per month will maintain the same electricity tariff, ensuring that many consumers do not suffer additional expenses during tough times.
BERC Backs Off Decision to Increase Tariffs
The commission revealed its latest electricity tariff policy on June 3, which would see a hike in the electricity rate for lifeline and residential consumers within the first bracket. This decision was taken at a time when consumers were already grappling with increasing expenses amid rising living costs. However, owing to the backlash it faced and the fear that the decision might affect common people, the commission revoked it a day later. As a result, the earlier rates remain unchanged, providing relief to low-income and moderate-income consumers across the country.
The 75-Unit Exemption Does Not Mean Free Electricity
A wave of online discussions has led many people to believe that Bangladesh has introduced a free electricity scheme for the first 75 units of monthly consumption. That interpretation is incorrect.
Consumers will continue paying for every unit of electricity they use. The latest decision simply means that the proposed tariff hike will not apply to households consuming up to 75 units per month. In other words, the exemption relates only to the price increase. It does not eliminate electricity charges. The misunderstanding appears to arise from the use of the word “exemption,” which actually means exemption from paying high tariffs rather than obtaining free power.
Who Can Enjoy Protection from Tariffs?
All those households consuming electricity below 75 units per month shall automatically enjoy tariff protection. There is no need for an application whatsoever. No registration is required, and no permission should be sought. All will be decided on the basis of the consumption figures that are recorded by the meter installed in the households’ premises. Those who observe the set consumption level will not have to do anything else but pay their bills as usual.
The policy covers residential users connected to electricity distribution networks across Bangladesh and is intended to protect households that consume relatively small amounts of electricity each month.
How Consumers Can Check Their Status
Households do not need to submit any documents to determine whether they qualify. The best approach to check the eligibility criteria is through examination of the electricity bill, which indicates the number of units used monthly. It is possible to compare present and past readings to measure monthly consumption. When monthly consumption is less than or equal to 75 units, then the household belongs to the protected group and is not influenced by the withdrawn increase in tariffs. People can consult their local electricity provider to clarify doubts on their eligibility.
The Importance of This Decision to Families
This shift holds tremendous economic significance, considering that it is the low-income groups who suffer the most due to any rise in the cost of utilities. Even a slight increase in the cost of electricity can put more strain on their family budget, especially when they are already suffering from inflation and rising cost of living. The retention of the current tariff by the regulator will certainly ease their burden of having to pay more for the limited amount of electricity used by them for necessities. It is expected to help them manage their family expenses.
Relief before Eid-ul-Azha
The news of relief to consumers is being celebrated even more because it is timed well before the approaching festival of Eid al-Adha. As Eid-ul-Azha is about to dawn on them, consumers are already making their preparations to meet their extra expenditure requirements. It will be too difficult for them to add an extra electricity expense at this time. This timely decision has earned a lot of appreciation among consumers across the country.
Consequences for Consuming More Than 75 Units
Though consumers whose consumption rate is up to 75 units have been saved from the increased tariff, higher tiers could apply to other users, who depend upon the quantity of consumed electricity. Bangladesh follows a multi-tier tariff rate for its electricity prices, in which tariff charges are usually proportionate to the increase in electricity consumption. Therefore, consumers consuming larger amounts of electricity pay more for each unit than other consumers consuming small quantities of electricity. This multi-tier system is devised to ensure that all low-end consumers can have easy access to electricity while encouraging better consumption of electricity among high-consuming households.
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Information Consumers Must Know
It should be kept in mind that BERC’s move has nothing to do with free electricity. This decision would protect millions of residents of Bangladesh from increased electricity tariffs, as they will continue to pay their current rate and will not be affected by the recently announced increased tariffs. As far as consumers are concerned, they need to keep checking the consumption of electricity on a monthly basis.
FAQs
1. Is the 75-unit power tariff exemption really free electricity?
No. You still pay per unit. The exemption means you’re protected from the rate hike, not from paying.
2. How do I check if I qualify for BERC’s power tariff protection?
Simply check your monthly bill for “units consumed.” If it’s 75 or less, you automatically qualify.
3. Do I have to apply for the 75-unit discount scheme?
An application is not required since the policy will be automatically applied depending on your meter reading.
4. What happens if I exceed the limit of 75 units per month?
If I exceed that number, other rates apply, which are increased according to my consumption of 200, 400, and 600 units or more.
5. When do I pay the previous rate?
The previous rates (Tk 4.63 for 0-50 units, Tk 5.26 for 0-75 units) will be applicable from June 2026.
