Rising electricity tariffs could make essential cooling increasingly unaffordable for low-income households as Bangladesh faces more frequent and intense periods of extreme heat.
The Bangladesh Energy Regulatory Commission (BERC) raised electricity tariffs in June, increasing the wholesale rate from Tk7 to Tk8.39 per kilowatt-hour, a 19.85% rise.
The weighted average retail tariff also increased by 16.68%, from Tk9.11 to Tk10.63 per unit.
BERC retained lifeline rates for low-volume consumers, however, keeping the tariff at Tk4.63 for households using less than 50 units a month and Tk5.26 for those using less than 75 units. The adjusted average retail tariff was set at Tk10.40 per unit.
The increase is more significant for households that consume more electricity for cooling.
Under the revised tariff, residential consumers using 76 to 200 units a month now pay Tk8.50 per unit for consumption above the first 75 units, up from Tk7.20.
For a household consuming 200 units a month, the electricity charge has increased from Tk1,294.50 to Tk1,457, an additional Tk162.50 before demand charges and VAT.
For low-income families already limiting electricity use because of rising living costs, the increase could make it harder to run fans and other cooling appliances for longer periods during extreme heat.
The tariff hike comes as Bangladesh's heat burden is growing, with rising temperatures posing increasing risks to public health and productivity.
A new publication by the Climate Impact Lab projects nearly 430,000 additional heat-related deaths globally every year by 2050. Poorer countries are expected to record mortality rates 10 times higher than affluent regions.
Bangladesh is among 18 countries identified as particularly vulnerable, where rapidly rising extreme heat is expected to coincide with limited growth in electricity consumption for cooling.
The researchers warn that simply connecting households to the electricity grid will not be enough. People also need to be able to afford the electricity required to cool themselves during dangerous heat episodes — what the researchers describe as a potential “mortality-cooling trap.”
Bangladesh had an electrification rate of 99.5% by 2023, according to World Bank data.
Yet access to electricity does not translate into equal access to cooling.
Affluent households can increasingly rely on air conditioners, while many low-income families have to limit even basic fan use because of electricity costs.
The disparity is particularly evident in Dhaka, where rapid urbanization, concrete surfaces, dense construction and heavy traffic have intensified heat exposure.
Between 1980 and 2023, Bangladesh's maximum temperature increased by 1.1°C, while the national heat index rose by 4.5°C.
In Dhaka, the maximum temperature increased by 1.4°C, while the rise in the heat index was roughly 65% higher than the national average.
The loss of 47% of the capital's dense green space between 1989 and 2020 has further intensified the city's vulnerability to heat.
The economic cost is also substantial.
The World Bank estimates that heat-related physical and mental illnesses caused around 250 million lost workdays in Bangladesh in 2024, resulting in an economic loss of $1.78 billion, equivalent to nearly 0.4% of GDP.
A 2024 survey of more than 16,000 people found that high temperatures were associated with heatstroke, exhaustion, chronic fatigue, respiratory illnesses, diarrhea, anxiety and depression. Women were particularly vulnerable to severe exhaustion.
Higher electricity costs could further compound these health risks by making access to cooling increasingly dependent on household income.
The Climate Impact Lab has warned that access to cooling is likely to remain deeply unequal, particularly in poorer countries where electricity consumption is expected to grow more slowly.
This could leave vulnerable populations increasingly exposed to heat-related health risks even as wealthier households are able to expand their use of air conditioning.
The World Health Organization (WHO) recommends a broader approach to heat protection.
Its guidance calls for heat-health warning systems, heat-action plans, measures to reduce heat exposure and access to cool spaces for people who cannot adequately cool their homes.
The WHO also recommends giving particular attention to vulnerable populations during extreme heat and identifies air-conditioned public buildings as one option for people without adequate cooling at home.
The World Bank has likewise called for stronger adaptation measures in Bangladesh as heat intensifies.
Urban planning, expanded green spaces and measures to reduce people's exposure to extreme heat are among the measures it has identified as necessary.
