What is the demand charge and meter rent of electricity bill and who determines

What is demand charge and Who determines ?

  • When a customer applies for a meter to use electricity, he / she has to sign / pledge the form stating the usage limit of that customer. For example, if a customer says he will need 2 kWh (kilowatts). This means that the maximum power consumption limit of the customer is 2 kWh. This 2 KW is his contracted load. Demand charge is the charge imposed on this maximum power consumption limit or contract load.
  • In order to supply the contract load to the customer, all the power distribution companies take all necessary measures including necessary equipment and goods to ensure the supply to the customer. E.g., transformer, pole, wire etc. Just as the government bears the money for these equipments and goods, the government also takes back the money through demand charges.
  • Demand charges cannot be levied at one’s own discretion. It is determined by the Bangladesh Energy Regulatory Commission (BERC). This BERC determines the sale, purchase, production, distribution, fines, subsidies, bill rates, demand charges, VAT of electricity. For example, BERC has set a demand charge of Tk 30 per kilowatt for residential, irrigation and agricultural customers and Rs 60 for commercial marketing. The total bill is calculated on the basis of the demand charge and the cost of electricity used. This money is deposited in the government revenue sector. No person or organization owns this money.

What is meter rent and why ?

Rural electricity mostly provides electricity to rural people. Most of whom are not well off. The price of a 1 phase meter is 1200/1500 Tk. Many customers can’t afford to get electricity connection with that money. So it takes 10 Tk per month. The life span of a meter is usually 10 years. Then 10 years x 12 months x 10 Tk = 1200 Tk. However, most of the meters are damaged before 10 years. Even 10 days or 1 month can be damaged. The customer is then given a new re-meter for free. 10 rupees per month is done in the interest of the customer, so that the customer gets the benefit. However, if a customer buys the meter himself, he does not have to pay the meter rent. In this case, if the meter is damaged, the customer will have to pay again. Will the meter rent continue after 10 years? The answer is yes. Because, if a customer’s meter is damaged even after 1 month, then since no money is taken, if the meter is good even after 10 years, Meter rent will continue. More importantly, the Rural Electrification Board buys electricity at a rate of Tk 4,389. However, the residential customers in the village are being charged 0-65 units at the rate of Tk 4.19. The total number of customers under rural electrification is 2 crore 82 lakh. There are about 20 million subscribers under 75 units. This is giving electricity to a large number of customers at a price lower than the purchase price for their convenience. Know the right information, let others know the right information. Eliminate the confusion with the demand charge and meter rent of the electricity bill. At the rate of 19 rupees. The total number of customers under rural electrification is 2 crore 82 lakh. There are about 20 million subscribers under 75 units. This is giving electricity to a large number of customers at a price lower than the purchase price for their convenience. Know the right information, let others know the right information. Eliminate the confusion with the demand charge and meter rent of the electricity bill. At the rate of 19 Tk. The total number of customers under rural electrification is 2 crore 82 lakh. There are about 20 million subscribers under 75 units. This is giving electricity to a large number of customers at a price lower than the purchase price for their convenience. Know the right information, let others know the right information. Eliminate the confusion with the demand charge and meter rent of the electricity bill.

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