Electricity Prices Leap: Household, Agricultural, and Industrial Costs Set to Rise

  • Average retail price increased by Tk 1.52 per unit
  • Average price per kilowatt rose from Tk 9.11 to Tk 10.63
  • Additional cost of 69 poisha per unit for 17.5 million low-income families
  • Fears of new pressure on production costs and inflation

Retail electricity prices in the country have increased after 27 months. The average price of electricity at the consumer level has been fixed at Tk 10.63 per unit (kilowatt), an increase of Tk 1.52 from Tk 9.11. Depending on the consumer class, the price of this essential service has increased by 10 to 20 %. The public will have to purchase electricity at the new rates starting from the first of this June.

So far, this marks the highest single-step increase in electricity prices in the country in terms of monetary amount, though it is the second-highest considering the percentage of the hike. Overall, amidst the rising prices of daily essentials—including fuel and edible oils—this hike in electricity prices will create additional pressure on people with limited and fixed incomes trying to meet household expenses. It will increase the production costs of various agricultural and industrial goods. Occurring just before a salary hike for government employees, this price increase is also expected to exacerbate inflationary shocks.

The regulatory body, Bangladesh Energy Regulatory Commission (BERC), announced the new retail electricity tariffs at a press conference on Wednesday. The agency has also reassessed and increased wholesale electricity prices and transmission tariffs. Following the pricing formula, the higher the voltage and electricity consumption, the higher the price according to the consumer class. Under this framework, the minimum price per unit of electricity is Tk 5.32—reserved specifically for lifeline consumers. Temporary LT-T consumers will have to buy electricity at the highest rate of Tk 23.81.

BERC Chairman Jalal Ahmed announced the new rates at the press conference. Among others present were members Abdur Razzak, Mizanur Rahman, Syeda Sultana Razia, and Brigadier General (Retd.) Mohammad Shahid Sarwar.

More Pressure on Low-Income Households

As of March 2026, the total number of consumers across the six electricity distribution entities in the country stands at 49,804,481. Of these, 42,574,121 are domestic consumers. Currently, the Bangladesh Power Development Board (BPDB), 80 cooperatives (samitis) under the Rural Electrification Board (REB), DPDC, DESCO, WZPDCL, and NESCO are distributing electricity in various regions. Across all agencies and companies, the number of lifeline consumers is 17,882,380. The lion’s share of this—16,147,591 consumers—belongs to the Rural Electrification Board. Nearly 42 % of residential consumers fall under the lifeline category. Consumers whose electricity usage is limited to 50 kilowatts per month are classified as lifeline consumers. These are families with limited incomes and minimal electricity usage. A large portion of them depends on income from agriculture, day labor, and the informal sector, with a significant segment lacking a regular income altogether. Consequently, the increase in their electricity expenses will directly and negatively impact their family expenditure.

Residential Costs to Rise by 15 to 19.94 %

Electricity prices for residential consumers have been increased by an average of 16.68 %. The minimum increase is 15 % for lifeline consumers, while the maximum is 19.94 %. For consumers using up to 50 units, their monthly electricity bill will increase by around Tk 35. Meanwhile, for residential users consuming up to 600 units, the bill will rise by approximately Tk 1,644. The VAT amount will also increase proportionally.

There are six additional tiers in the residential category. In the first tier, for users of 75 units, the bill has been increased from Tk 5.26 to Tk 6.18 per unit; in the second tier for 76-200 units, from Tk 7.20 to Tk 8.50; for 201-300 units, from Tk 7.59 to Tk 9.10; for 301-400 units, from Tk 8.02 to Tk 9.62; for 401-600 units, from Tk 12.67 to Tk 15.01; and in the final tier, for users above 600 units, the rate has been raised from Tk 14.61 to Tk 17.35 per unit. These rates are applicable to low-voltage category consumers.

For medium voltage (11 kV), consumers ranging from 50 kilowatts to 5 megawatts will see the flat rate increase from Tk 10.55 to Tk 12.50, off-peak rates from Tk 9.50 to Tk 11.25, and peak (evening) rates from Tk 13.29 to Tk 15.62. On the other hand, the rate for agricultural irrigation (low voltage) has been increased from Tk 5.25 to Tk 6.04 per unit. For medium voltage (11 kV) irrigation, the flat rate has been increased from Tk 6.42 to Tk 7.38, off-peak from Tk 8.63 to Tk 6.64, and peak from Tk 8.06 to Tk 9.23.

79 Poisha per Unit Increase in Agricultural Irrigation, Tk 1.50 in Hospitals

Consumers will have to pay higher bills for irrigation, streetlights, religious institutions, and battery charging. In low voltage, irrigation rates have been increased from Tk 5.25 to Tk 6.04, and for battery charging, peak rates have been raised from Tk 12.14 to Tk 14.20, while off-peak rates have increased from Tk 8.66 to Tk 10.22.

For electric vehicles and battery charging (low voltage), the flat rate has been increased from Tk 9.59 to Tk 11.36 per unit, off-peak from Tk 8.63 to Tk 10.22, super off-peak from Tk 7.71 to Tk 9.09, and peak from Tk 12.14 to Tk 14.20. In battery charging (medium voltage 11 kV), the flat rate per unit has been increased from Tk 9.62 to Tk 11.31, while off-peak is set at Tk 10.18, super off-peak at Tk 9.05, and peak at Tk 14.14.

Meanwhile, for agricultural irrigation (medium voltage), the flat rate has been increased from Tk 6.42 to Tk 7.38, off-peak from Tk 5.77 to Tk 6.64, and peak from Tk 8.06 to Tk 9.23. In low voltage, the rate for educational, religious, and charitable institutions, as well as hospitals, has been increased from Tk 7.55 to Tk 9.05 per unit.

Additional Costs for Small and Cottage Industries

In low voltage (230/400 volts), peak hour rates for small and cottage industries have been increased from Tk 12.95 to Tk 15.27 per unit; off-peak from Tk 9.68 to Tk 11.45; and the flat rate from Tk 10.76 to Tk 12.73. For low-voltage commercial and office uses, peak hour rates have been increased from Tk 15.62 to Tk 18.43 per unit; off-peak from Tk 11.71 to Tk 13.82; and the flat rate from Tk 13.01 to Tk 15.36.

For medium voltage (11 kV) commercial and office uses, peak rates have been increased from Tk 14.57 to Tk 17.41 per unit; off-peak from Tk 10.48 to Tk 12.54; and the flat rate from Tk 11.63 to Tk 13.93. In high voltage (33 kV), peak rates have been raised from Tk 14.40 to Tk 17.05; off-peak from Tk 10.26 to Tk 12.28; and flat rates from Tk 11.39 to Tk 13.63. For high-voltage industrial establishments, peak rates have been increased from Tk 13.47 to Tk 15.93; off-peak from Tk 9.69 to Tk 11.47; and the flat rate from Tk 10.75 to Tk 12.75. Furthermore, prices have also been increased for extra high voltage (132 kV and 230 kV) in the EHT-1 General and EHT-2 General categories.

Wholesale and Transmission Tariffs

At the wholesale level, the current average price has been increased from Tk 7.04 to Tk 8.39 per unit. On the other hand, the transmission tariff (average) has been increased from 31 poisha to approximately 39 poisha per unit. The country’s sole electricity transmission company, PGCB (Power Grid Bangladesh PLC), had applied to increase the rates from 30 and 31 poisha to 48 and 49 poisha per unit, respectively.

Government to Provide Tk 41,000 Crore Subsidy

Even after a 19.85 % increase in wholesale electricity prices, there will be an annual loss of Tk 41,000 crore, stated Bangladesh Energy Regulatory Commission Chairman Jalal Ahmed. The government will have to provide this money to the BPDB as a subsidy.

The BERC Chairman noted that the current wholesale electricity rate has been increased by an average of Tk 1.39, from Tk 7 to Tk 8.39 per unit. This average increase of Tk 1.39 per unit will generate an additional revenue of Tk 14,200 crore. Even after this, a subsidy of Tk 41,000 crore will still need to be provided.