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Prepaid meters: A costly switch?

Soaring bills, mysterious changes from prepaid meters spark nationwide outrage
Ashraful Islam Raana
15 Jul 2024 23:40:52 | Update: 16 Jul 2024 14:32:02
Prepaid meters: A costly switch?

Sajib Kabir, a resident of Hazaribagh, had his postpaid electricity meter replaced with a prepaid meter in May. The following month, his electricity bill soared to Tk 30,000, a stark increase from the usual Tk 8,500 to Tk 9,000. This sudden spike compelled Sajib to make frequent visits to his designated electricity distribution company’s office to address the inflated bill.

Sajib's case is not an isolated incident. Millions of electricity consumers across Bangladesh are grappling with similar issues related to prepaid meters. Despite the government's aim to simplify the billing process through prepaid meters, many consumers report that their bills often double compared to traditional meters, coupled with unexplained deductions. Distribution companies and the Power Division have yet to provide clear explanations.

Recently, Power Division Senior Secretary Habibur Rahman addressed these concerns, attributing them to misunderstandings about prepaid meters. "Prepaid meters are designed to provide better service with no hidden charges. Distribution companies have been instructed to investigate complaints about excessive bills," he stated.

The Bangladesh Rural Electrification Board (BREB) has received the highest number of complaints. Local electricity offices nationwide are overwhelmed with issues, leading to protests and legal actions.

The High Court has ordered a specialist committee to investigate.

Currently, 47.1 million electricity consumers nationwide are served by six distribution companies, with about 5.2 million using prepaid meters. Efforts are underway to extend this system to all consumers.

The companies include the Bangladesh Power Development Board (BPDB), BREB, Dhaka Power Distribution Company Limited (DPDC), Dhaka Electric Supply Company Limited (DESCO), West Zone Power Distribution Company Limited (WZPDCL), and Northern Electricity Supply Company PLC (NESCO).

According to insiders, the Bangladesh Energy Regulatory Commission (BERC) guidelines stipulate that consumers must pay a demand charge, a 5 per cent late fee on the total bill, and a 15 per cent value-added tax (VAT). Distribution companies cannot impose additional charges without BERC approval.

However, there are allegations of unauthorised extra charges by the companies.

Visits to multiple DPDC and DESCO regional offices in Dhaka, as well as other districts, revealed common complaints from consumers—excessive charges, fines for late bill dispatch, uncredited balances after recharging, overcharging compared to usage, and balances not showing on the meter.

State Minister for Power, Energy, and Mineral Resources Nasrul Hamid acknowledged the issue, saying, "Distribution companies are raising awareness about the prepaid billing system. The issue of excessive billing will be resolved soon."

Prepaid meters causing extreme suffering

The prepaid meter, introduced to streamline billing, has instead become a major inconvenience for many consumers. Customers have reported that after recharging their prepaid meters, their balance often vanishes unexpectedly, and power distribution companies deduct additional, unexplained amounts from their accounts.

A DPDC customer in Dhanmondi alleged his costs rose from Tk 700 in March to Tk 1,200 in April and Tk 1,800 in May, despite consistent electricity usage.

If the prepaid meter balance runs out, consumers can borrow an emergency balance of Tk 200, but they must repay Tk 50 as interest, which is against BERC guidelines.

A DPDC official, speaking anonymously, stated, "There is no scope for taking extra money beyond the rules. Higher bills result from increased electricity prices, slab re-adjustments, and higher usage in summer." Multiple officials from the Palli Bidyut Samity claim that low-quality meters are causing excessive charges.

Conscious overbilling!

In Mohakhali, customer Aminul Haque reported discrepancies in his meter readings, with his bill for May showing higher usage than the actual meter reading in June. Abdullah Al Mamun, a customer in Jashore, was billed Tk 21,970 till June 6, but on June 19, his meter read Tk 21,941.

This issue affects millions of customers, many of whom face complicated processes to correct their bills, while most end up paying the inflated amounts. Complaints peak from April to June each year.

In 2020, following widespread complaints of ghost billing, the Power Division formed an investigation committee. The committee confirmed the allegations and recommended penalties for 290 officials across six distribution companies.

An internal DPDC memo revealed directives to inflate bills, leading to the dismissal of several employees when the matter came to light.

High Court orders expert committee

The High Court on June 12 ordered an expert committee to investigate complaints related to prepaid meters. Justice Mustafa Zaman Islam and Justice SM Masud Hossain Dolon issued the order following a writ petition seeking transparency and reform in prepaid billing. Power Cell Director General Engineer Mohammad Hossain confirmed ongoing discussions and a planned meeting to address the issue. 

Protests by agonised consumers

Frustrated by abnormal bills, consumers took to the streets, organising protests, sit-ins, and human chains across the country. On July 2, rural electrification customers in Subarnachar, Noakhali, protested at the upazila roundabout, while Faridgonj and Chandpur Palli Bidyut Samity-2 customers staged a human chain protest in front of the zonal office.

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