Prepaid electricity meters are now standard for urban consumers in Bangladesh under DESCO, DPDC, and BREB (Palli Bidyut). Yet a common complaint among users is that their balance disappears faster than expected when recharging. Much of this confusion stems from monthly deductions (demand charges, meter rent) and the progressive slab rate structure. This guide explains the exact formula behind prepaid meter billing and how to calculate your net electricity units.
1. The Anatomy of a Prepaid Meter Recharge
When you recharge BDT 1,000 onto your card, you do not get BDT 1,000 worth of electricity. The payment portal immediately deducts fixed charges and government taxes. The remaining balance (the active energy balance) is what purchases your kilowatt-hour (kWh) units. The deductions are split into three categories:
- Meter Rent (Monthly): A fixed fee for leasing the meter. For single-phase residential meters, this is BDT 40 per month. For three-phase meters, it is BDT 250 per month.
- Demand Charge (Monthly): A capacity reservation fee set by BERC. For residential (LT-A) consumers, this is BDT 42 per kilowatt (kW) of sanctioned load per month. If your flat's load is 3 kW, your monthly demand charge is BDT 126.
- Taxes: NBR levies a 5% Value Added Tax (VAT) on the active energy cost. In addition, there is a 5% government duty/electricity tax, making the total tax deduction 10% of the energy value.
2. The Golden Rule of Subsequent Recharges
A key source of confusion is why a second recharge in the same calendar month yields significantly more units. The reason is simple: Meter Rent and Demand Charges are deducted only ONCE per calendar month, during your first recharge. If you recharge BDT 1,000 on June 1st, and BDT 1,000 on June 15th, the second recharge will have zero fixed deductions, meaning BDT 909.09 goes directly to buying energy compared to BDT 796.36 on the first recharge.
3. BERC Residential LT-A Tariff Slabs
Bangladesh uses a step-based slab tariff structure where unit rates increase as your consumption rises. If you consume more electricity in a month, you move to higher, more expensive slabs.
Residential LT-A Electricity Tariff Slabs (BERC 2024–2026)
| Slab | Unit Range (kWh) | Rate per Unit (BDT) | Description |
|---|---|---|---|
| Lifeline | 0 to 50 | BDT 5.32 | Discounted rate for low-income households |
| Slab 1 | 0 to 75 | BDT 6.18 | Standard base residential slab |
| Slab 2 | 76 to 200 | BDT 8.50 | Average apartment consumption slab |
| Slab 3 | 201 to 300 | BDT 9.10 | Medium-high consumption slab |
| Slab 4 | 301 to 400 | BDT 9.62 | High consumption slab |
| Slab 5 | 401 to 600 | BDT 15.01 | Premium tariff slab |
| Slab 6 | Above 600 | BDT 17.35 | Maximum peak residential tariff |
4. Step-by-Step Mathematical Calculation
Let us calculate the units received for a first-of-month recharge of BDT 1,500 for a single-phase residential flat with a 3kW sanctioned load under DESCO:
- 1Fixed Deductions: Meter Rent = BDT 40. Demand Charge = 3 kW × BDT 42 = BDT 126. Total Fixed = BDT 166.
- 2Net Balance for Energy & Taxes: BDT 1,500 - BDT 166 = BDT 1,334.
- 3Active Energy Balance (Excl. 10% VAT/Duty): BDT 1,334 / 1.10 = BDT 1,212.73.
- 4Slab 1 Purchase (first 75 units): 75 kWh × BDT 6.18 = BDT 463.50. Remaining balance = BDT 1,212.73 - BDT 463.50 = BDT 749.23.
- 5Slab 2 Purchase (next 125 units): 125 kWh × BDT 8.50 = BDT 1,062.50. Since our remaining balance (BDT 749.23) is less than BDT 1,062.50, we buy units: BDT 749.23 / BDT 8.50 = 88.14 kWh.
- 6Total Units Purchased: 75 + 88.14 = 163.14 kWh.
5. References and Legal Framework
This guide is based on official publications from the Bangladesh Energy Regulatory Commission (BERC) Tariff Gazette, DPDC and DESCO customer services, and Ministry of Power energy circulars. Always check your utility bill for changes to your sanctioned load.