The government of Bangladesh has introduced a 0.5% rebate on prepaid electricity meters, offering households a financial incentive while encouraging more efficient power use. The discount applies to the remaining balance after each recharge, reducing costs for consumers who opt for prepaid systems over traditional postpaid billing. This rebate is applied automatically after deductions for VAT, demand charges, and meter rent during the first recharge of each month, ensuring consumers receive tangible savings without additional effort.
According to a power division official, the rebate is part of broader adjustments made during the first recharge of each month. For example, a residential consumer with a 2-kilowatt sanctioned load who recharges Taka 1,000 in January would see Taka 171.62 deducted for these fees. After applying the 0.5% rebate, the remaining balance would be Taka 832.52, available for electricity consumption. Additional Secretary Noor Ahmad of the Power Division highlighted that this rebate helps reduce unnecessary expenditure by encouraging consumers to monitor and adjust their usage patterns proactively.
Prepaid meters cut costs and simplify connections
The shift toward prepaid meters also eliminates the need for security deposits, simplifying the process for new connections. Residential users face a monthly demand charge of Taka 42 per kilowatt, along with a 5% VAT. Meter rental varies: Taka 40 for single-phase meters and Taka 250 for three-phase units. The system also prevents meter readers from visiting households, cutting manpower and travel costs while reducing administrative burdens for utilities.
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Prepaid meters offer additional operational benefits for distribution companies. They reduce system losses, improve load management, and enhance billing accuracy. Unlike postpaid meters, which deliver bills at the end of the month—making expense tracking difficult—prepaid systems allow consumers to monitor usage in real time. Recharges can be made through mobile financial services, debit/credit cards, or vending stations, with balances visible via dedicated apps like DESCO’s platform. Consumers can also check their recharge amounts, remaining balances, and electricity consumption through these digital tools, enabling better financial planning. The system further includes emergency credit and “friendly hour” provisions, allowing users to continue electricity access even when balances hit zero, while unused balances roll over to the next month.
Consumers praise real-time control and budgeting
Consumers report practical advantages, such as better financial planning. Saleh Hasan, a user in Jatrabari, said he now recharges based on his monthly consumption needs, avoiding surprises at billing time. Muzahid Sheikh, a customer of Northern Electricity Supply PLC (NESCO), noted that prepaid meters help him control spending by providing clear visibility into usage patterns. Both users emphasized that the ability to estimate expenses in advance, rather than facing retrospective bills, has transformed their approach to electricity consumption. The system’s digital integration also simplifies tracking for rented properties and government facilities, where billing disputes were previously common.
Around 1.2 million of Dhaka Power Distribution Company Limited’s (DPDC) 20 million customers now use prepaid meters, while NESCO has converted 14 million of its 23 million users. Dhaka Electric Supply PLC (DESCO) reports 956,381 prepaid users out of 1.41 million, and the West Zone Power Distribution Company Limited (WZPDCL) has installed 666,627 prepaid meters for 1.76 million customers. The Bangladesh Rural Electrification Board (REB), serving approximately 38 million customers, has 1.5 million on prepaid systems. Support channels, including the central hotline 16999 and company-specific helplines, aim to address consumer concerns as adoption expands.
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