BERC rolls back power tariff hike for marginal consumers

The Bangladesh Energy Regulatory Commission (BERC) has rolled back its proposed electricity tariff hike for lifeline and first-tier residential users, sparing millions of low-income households from increased bills.

The dramatic U-turn comes just 24 hours after the regulator announced across-the-board retail tariff hikes. 

It follows intense pressure from the Power Division and distribution companies, who warned of a crippling impact on marginal consumers.

In an order issued on Thursday, BERC confirmed that following a review of applications from entities including the BPDB, BREB, DPDC, DESCO, WZPDCL, and NESCO, the higher rates would not apply to lifeline consumers (using up to 50 units monthly) and first-tier users (up to 75 units).

Consequently, the lifeline tariff remains at Tk4.63 per kilowatt-hour (kWh), instead of rising to Tk5.32, while first-tier rates stay at Tk5.26 per kWh rather than the proposed Tk6.18. The frozen rates take effect from the June 2026 billing cycle.

The reversal was triggered by a Power Division intervention, which urged BERC to reconsider the financial burden on low- and lower-middle-income families “at a time when the government is trying to improve their living standards.”

The regulator admitted that protecting these vulnerable tiers will hit the revenues of power utilities, leaving the state to plug the shortfall. 

“The resulting shortfall will have to be compensated through additional government subsidies,” BERC noted.

The adjustment will lower the weighted average retail electricity tariff to Tk10.40 per kWh, down from the Tk10.63 announced on 3 June.

Originally, BERC had sanctioned an average retail tariff surge of 16.68% alongside wholesale and transmission hikes, following public hearings on 20-21 May.  That sweeping decision drew fierce opposition from consumer rights groups, business bodies, and politicians, who warned that escalating energy costs would trigger a cost-of-living crisis for both households and industries.