Dhaka, August 9: The rising electricity tariffs in Bangladesh have made it increasingly difficult for residents to access cooling solutions amid the sweltering heat. The increase in rates is particularly burdensome for low-income families, making essential cooling options even more expensive. According to local media, the country is experiencing extreme temperatures, and the costs for fans, coolers, and air conditioners are rising significantly.
In June, the Bangladesh Energy Regulatory Commission (BERC) raised electricity tariffs, causing the wholesale rate to jump from 7 Taka to 8.39 Taka per kilowatt-hour, marking a 19.85% increase.
As reported by the Dhaka Tribune, the weighted average retail tariff also rose by 16.68%, increasing from 9.11 Taka to 10.63 Taka per unit. While BERC has maintained lifeline rates for low-volume consumers, households using less than 50 units per month will now pay 4.63 Taka, and those using less than 75 units will pay 5.26 Taka. The adjusted average retail tariff has been set at 10.40 Taka per unit.
This increase particularly impacts households that rely heavily on electricity for cooling. Under the new tariff structure, residential consumers using between 76 and 200 units will now pay 8.50 Taka per unit for usage exceeding 75 units, up from the previous rate of 7.20 Taka.
For families consuming 200 units of electricity per month, the charge has risen from 1,294.50 Taka to 1,457 Taka, which is 162.50 Taka more before demand charges and VAT.
Low-income families, already struggling with rising living costs, may find it increasingly difficult to run fans and other cooling appliances for extended periods during the heat.
The tariff hike comes at a time when the heat burden in Bangladesh is intensifying, posing risks to public health and productivity due to rising temperatures.
A recent publication from the Climate Impact Lab predicts that by 2050, there could be approximately 430,000 additional deaths worldwide each year due to heat. It is expected that poorer countries will face a death rate ten times higher than wealthier regions.
The Dhaka Tribune notes that Bangladesh is among 18 countries identified as particularly vulnerable, where extreme heat is expected to rise rapidly, while the growth in electricity consumption for cooling remains limited.
Researchers warn that merely connecting homes to the electricity grid is insufficient. People must also bear the costs of electricity necessary to keep cool during dangerous heat waves. According to World Bank data, as of 2023, Bangladesh had a 99.5% electricity access rate, but access does not guarantee adequate cooling.
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