Sudden rise in energy price use may tarnish govt image

Electricity is one of the foundations of modern life, powering industry, agriculture, healthcare, education, information technology and households alike.

Consequently, any increase in electricity tariffs is not merely an economic decision; it carries significant social and developmental implications.

While governments may have legitimate fiscal reasons for raising electricity prices, consumers are equally justified in expecting tangible improvements in the quality and reliability of the services they receive.

When households and businesses are asked to pay more, they reasonably expect uninterrupted power supply, accurate billing, prompt complaint resolution and efficient customer service.

Although electricity supply has improved considerably in recent years, many consumers-particularly in rural and remote areas-continue to experience unexpected outages, voltage fluctuations and service disruptions.

Industrial users also report that inconsistent power supply affects productivity. Price increases alone, therefore, cannot guarantee public satisfaction.

Billing remains another source of concern. Consumers frequently complain about inaccurate meter readings, estimated bills and calculation errors that result in charges exceeding actual consumption.

Greater transparency and accuracy in the billing process are essential if public confidence is to be maintained.

Improving service quality requires more than additional revenue; it demands better management and greater accountability.

The nationwide introduction of smart meters would improve billing accuracy and transparency.

Digital customer service platforms, supported by artificial intelligence, could accelerate complaint handling, while timely notifications via mobile applications or SMS regarding outages and restoration schedules would help minimise inconvenience.

Electricity distribution companies should also publish key performance indicators, including outage duration, complaint resolution times, billing accuracy and customer satisfaction, to strengthen transparency and encourage higher service standards.

The financial pressures facing Bangladesh’s power sector are well documented.

Rising fuel import costs, foreign exchange constraints and mounting liabilities have increased the subsidy burden on the national budget.

In the long term, these challenges cannot be addressed through tariff adjustments alone.

Sustainable reform requires improvements across electricity generation, transmission, distribution, financial management and energy security.

Equally important are good governance, efficient operations and stronger oversight to ensure that public resources are used effectively.

The recent average tariff increase of 16.68 per cent, implemented through the Bangladesh Energy Regulatory Commission (BERC), reflects these financial realities.

The decision to exempt consumers using up to 75 units of electricity each month provides protection for many low-income households.

Nevertheless, the increase has placed additional pressure on lower-middle and middle-income families whose electricity consumption exceeds that threshold but whose incomes remain under considerable strain.

For these households, higher utility bills add to an already rising cost of living.

Future tariff adjustments should therefore follow a gradual and predictable approach, allowing households and businesses sufficient time to plan their finances.

Equally important, improvements in service delivery should be visible before or alongside any increase in prices.

Consumers are far more likely to accept higher tariffs when they can clearly see better reliability, faster customer service and more accurate billing.

The government should continue efforts to strengthen domestic gas production, improve the transmission network and diversify energy sources to ensure a stable electricity supply.

Transparency is equally vital. Consumers have a legitimate right to know how additional revenue is being utilized – whether to modernise infrastructure, invest in renewable energy, improve transmission or meet rising production costs.

Regular publication of performance and financial reports would help build public trust.

Ultimately, higher electricity prices can only be justified if they are accompanied by measurable improvements in service quality.

Reliable supply, transparent billing, efficient customer service and strong accountability should become the defining standards of Bangladesh’s electricity sector.

Sustainable progress depends not simply on generating more electricity, but on delivering dependable, efficient and equitable services to every consumer.

(The writer is former Deputy
Director General, Bangladesh
Ansar and VDP).