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At present, 200 units cost Tk 1,295: first 75 units at Tk 5.26 and the remaining 125 units at Tk 7.20. This excludes VAT and demand charges.

If the restructuring is implemented without tariff hikes, the same usage would cost Tk 1,440 because all 200 units would be billed at the higher slab rate.

With the proposed hike to Tk 8.20 from Tk 7.20 per unit for the higher slab, the bill would rise further to Tk 1,640, nearly 27 percent higher.

PDB estimates 35 percent of consumers would face extra billing pressure from restructuring alone, including 23 percent of lower-middle-income households.

The change could generate additional Tk 2,657 crore annually in retail revenue.

According to PDB data, Bangladesh has more than 4.31 crore residential electricity consumers. Of them, 43 percent are lifeline consumers using up to 50 units monthly, while another 22 percent consume up to 75 units.

Around 1 crore 53 lakh consumers use between 76 and 200 units monthly. These consumers are likely to be affected the most by the slab restructuring.

Beyond households, irrigation pumps, constructors, educational institutions, hospitals, commercial buildings, industries, and battery-charging stations would face hikes of 15–29 percent.

High-demand users could see 19–29 percent increases, while battery-charging stations face the steepest mid-level hike at nearly 24 percent.

Prof M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, said distributors lack authority to propose slab changes.

“PDB may propose tariff adjustments, but it cannot dictate how deficits should be recovered,” he told The Daily Star yesterday.

He warned that abolishing slab benefits would hit middle-income households hardest.

“Slabs were introduced to protect poor and middle-income people. Such a proposal should be treated as an instigation to manipulate the regulator’s judgement.”

PASSING THE ‘LOSSES’

Among the distributors, Dhaka Power Distribution Company (DPDC) and Dhaka Electric Supply Company (DESCO) proposed the highest retail hikes, while the Rural Electrification Board (REB) sought the lowest.

Most cited rising salaries, maintenance, office expenses, and the devaluation of the taka in ongoing projects.

PDB, which also distributes in Chattogram, Cumilla, Mymensingh, and Sylhet, said a 17 percent wholesale hike would raise distribution costs by 14.2 percent, while a 21 percent hike would raise costs by 17.76 percent.

DPDC reported Tk 1,083 crore deficit in FY23–FY25, and projects Tk 329 crore deficit in FY26 and Tk 441 crore in FY27 if tariffs remain unchanged.

It argues a 20 percent wholesale hike requires a 24.55 percent retail increase.

DESCO reported Tk 2,611 crore deficit in FY23–FY25, and projects Tk 821 crore more in FY26 under current tariffs.

REB, serving 77 percent of consumers, lost Tk 1,698 crore in FY25. It projects Tk 2,897 crore deficit in FY26 even without wholesale hikes.

Half its residential users are lifeline consumers paying Tk 4.63 per unit.

The agency said low consumption density in rural areas and subsidised lifeline consumers were major reasons behind Tk 3,300 crore annual losses.

NESCO, serving Rajshahi and Rangpur, also reports nearly half its residential users are lifeline consumers, which reduces its revenue.

WZPDC, serving Khulna, Barishal, and parts of Dhaka, proposed hikes of 8 percent for lifeline and 12.25 percent for other users. It reported Tk 514 crore losses in FY23–FY25.

Power Grid Bangladesh PLC reported Tk 1,280 crore cumulative losses in FY23–FY25. It said there was “no other option” but to increase wheeling charges to cover the losses.

Prof Shamsul criticised distributors for trying to make the consumers bear the costs of the companies’ “unrealistic expenditure”.

He said the distributors should explain how they made profits over the last 10 to 15 years by charging higher than necessary.

“Without holding them accountable, unrealistic expenditures in the name of development activities are going to be put on consumers’ shoulders,” he said.

“They were supposed to get all sorts of development activities approved by the regulator, but they never followed the process,” he added.