Extra Charges on Prepaid Meters Withdrawn

The government has withdrawn additional monthly charges on electricity prepaid meters. State Minister for Power, Energy and Mineral Resources Aninda Islam Amit said the decision aims to reduce public suffering and provide financial relief to consumers.

Currently, prepaid meters carry a monthly demand charge of 42 taka per kilowatt and a meter rent of 40 taka for single-phase connections. An additional 5% VAT is also applied to these charges. Consumers had long expressed widespread dissatisfaction over these extra costs.

Earlier on March 29, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku had said that monthly rent or meter charges for electricity prepaid meters would be removed.

Notably, the Bangladesh Energy Regulatory Commission (BERC) announced a power price hike on Wednesday. The commission raised retail electricity prices by an average of 16.68% and wholesale prices by 19.85%.

BERC said it set the new tariff considering higher costs for electricity generation, purchase and imports, transmission and distribution expenses, and the overall financial situation. According to the commission’s calculation, despite the wholesale price increase, the government will still need to provide nearly Tk 4,100 crore in annual subsidies to cover the Bangladesh Power Development Board’s (BPDB) deficit.

Analysts say the impact of the electricity price hike will not be limited to power bills alone. It is likely to affect industrial production costs, irrigation, small businesses, and the overall cost of living. This has raised concerns that consumers already under inflationary pressure may face additional financial strain.