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Bangladesh’s energy regulator is considering a reduction in wholesale electricity tariffs after reversing planned price hikes for low-income households, as state-run distributors warn of substantial revenue losses.
The Bangladesh Energy Regulatory Commission (BERC) is expected to take a decision as early as next week, although officials say the scale of any reduction remains under review.
The move follows BERC’s 3 June announcement raising both wholesale and retail electricity prices. However, within a day, the regulator partially rolled back the decision, retaining previous tariff rates for residential consumers using up to 50 units under the lifeline category and up to 75 units under the first consumption slab.
Officials estimate that the rollback could reduce the combined revenues of distribution companies by around Tk2,300 crore. The Bangladesh Rural Electrification Board (BREB), which serves the largest number of consumers, is likely to bear the brunt, with projected losses of about Tk1,780 crore.
Sources at BERC said BREB has formally notified the commission of the anticipated shortfall, while other utilities have also expressed concern.
In response, the regulator has taken a policy decision to consider lowering the average wholesale tariff—currently Tk8.39 per unit—to ease pressure on distribution companies.
BERC Chairman Jalal Ahmed said on Wednesday that the proposal is under active consideration. “The matter is still being examined, and no decision has yet been taken regarding the extent of the tariff adjustment,” he said.
He noted that maintaining earlier rates for lifeline and first-tier consumers had created a significant revenue gap. “BREB alone has indicated a possible shortfall of around Tk20 billion, given its large consumer base. Steps are being taken to adjust wholesale tariffs to mitigate the impact,” he added.
Under the 3 June tariff schedule, lifeline consumers were to pay Tk5.32 per unit, up from Tk4.63, while those using up to 75 units were to be charged Tk6.18 per unit, compared with Tk5.26 previously. These increases were withdrawn on 4 June.
Dr Mustafa K Mujeri, former chief economist of Bangladesh Bank, said the move reflects an attempt to balance consumer protection with the financial viability of utilities already strained by rising generation costs and subsidy pressures.
The government continues to grapple with mounting energy-sector losses while seeking to shield low-income households from higher bills amid persistent inflation.
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