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Controversial Electricity Billing

No decision yet to restore old system

PM unhappy with new one

Staff Correspondent
Despite widespread public discontent over the introduction of a geometrical billing system, the Bangladesh Energy Regulatory Commission (Berc) remains undecided about restoring the traditional billing method.
Instead, the commission is now set to replace the existing three-tier tariff slab system with a seven-tier one, claiming it will keep the bill at a "tolerable level".
The decision came at a meeting with the prime minister in the chair yesterday. Sheikh Hasina expressed her resentment about the three-tier tariff system intro-
duced in March, sources said.
Since then, customers using up to 100 units are paying Tk 3.05 a unit. In the second slab (101 - 399 units), the rate isTk 4.29. Those who consume 400 units and above payTk 7.89 per unit.
Under the changed system, if a subscriber uses 400 units, his entire bill will be calculated under the third slab in a geometric method. As a result, customers who used to spend Tk 1,500 a month till March are now paying around Tk 4,000 or even Tk 5,000 for using the same electricity.
But before March, consumers had to pay progressively for different slabs -- that
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is one rate for the first 100 units, another rate for the second 100 units and yet another rate for the next 100 units.
"The prime minister suggested that we introduce more slabs so that customers can keep their electricity bills within a tolerable level," Salim Mahmud, a member of the energy watchdog, told The Daily Star.
Berc Chairman Syed Yusuf Hossain and member Emdadul Haque were present at the meeting with the premier at the latter's residence.
Salim Mahmud said there would be seven slabs from 0 to75 units (kilowatt-hour), 76 to 200 units, 201 to 300 units, 301 to 400 units, 401 to 500 units, 501 to 700 units and 701 units to above.
These slabs would be introduced when the commission announces a new power tariff structure. The regulatory body, however, has yet to fix the tariff for each slab.
Mahmud said they were yet to decide on restoring the progressive billing method through abolishing the geometric billing system.
“We hope the seven-tier billing method will reduce public grievances. If we stick to the current billing system, we will not increase the tariff of the highest slab in order to give the consumers a respite,” he noted.
But without restoring the progressive billing, the introduction of the seventier system will not help power consumers as the total bill will continue to get higher.
The commission is now working on the proposals of electricity distributing companies on increasing the bulk and retail tariffs. It has already held public hearings on increasing the bulk tariff.
Berc has increased power tariff three times in the last six months to cut government spending on subsidies for the energy sector.