Bill Calculator

Language

Time-of-Use (TOU) tariff in Bangladesh

Industrial and large commercial consumers in Bangladesh can opt into TOU rates. We explain when it actually pays off — and when it doesn't.

9 min read·Published 2025-12-18
Time-of-use tariff

Peak, off-peak, super off-peak — and whether TOU saves you money

Industrial and large commercial consumers can opt into TOU rates. Here's how to decide if it pays off — and how it doesn't.

24-hour TOU windows126 AM12 PM6 PMPeak5 PM – 11 PMOff-peak11 PM – 5 AMSuper off-peak5 AM – 5 PM

The short answer

  • TOU is for industrial and large commercial — residential cannot opt in
  • Two- or three-shift industrial operations almost always win on TOU
  • Single-shift day operations and peak-hour commercial users usually lose on TOU

The windows

Three time bands

  • Peak — 5:00 PM to 11:00 PM. Highest grid demand. ~30–40% higher than the flat-rate equivalent.
  • Off-peak — 11:00 PM to 5:00 AM. Cheapest. ~30–40% lower than flat.
  • Super off-peak. Applies in specific hours for select industrial categories with discounted rates beyond standard off-peak.

Eligibility

Who can opt into TOU

  • LT-C (small industry) — opt-in
  • MT-1 (medium industry) — TOU is the default; flat rate must be specifically requested
  • MT-2 (medium commercial) — opt-in
  • HT-1, EHT-1 (large industry) — TOU default

When it pays

Where TOU saves money

Industries running two- or three-shift operations almost always win on TOU: a midnight-to-8-AM shift gets cheap off-peak rates for most of its consumption. A garment factory running 8 AM–8 PM single shift is on the wrong side of TOU — most of its consumption is at peak rates.

For commercial consumers (MT-2 offices, hotels, malls), the calculation is murkier. Restaurants and shops doing the bulk of business at peak hours (5–11 PM) lose money on TOU.

How to estimate

Before opting in

1

Pull half-hourly data

Request a 6-month half-hourly meter export from your distribution company. Industrial meters record this automatically.
2

Bucket by window

Compute the share of consumption in peak, off-peak, and super-off-peak windows.
3

Apply TOU rates

Multiply each bucket by its TOU rate and total.
4

Compare to flat

If TOU is >5% cheaper, opt in. If within 5%, don’t — the operational complexity isn’t worth marginal savings.

Operationally

What changes when you opt in

  • Bills break consumption into peak / off-peak / super-off-peak columns.
  • The meter needs to support time-of-use registers (most industrial-class meters already do).
  • You can shift discretionary loads — water pumps, ETP cycles, charging banks — to off-peak windows.

Frequently asked questions

Not in the current BERC tariff order. Residential LT-A remains slab-based. TOU is for industrial and large commercial.

Read next

Medium Tension (MT) rates

11kV rates for larger commercial and industrial connections.

Consumer categories

The category on your meter (LT-A, LT-B, LT-C, LT-D, LT-E, MT, HT, EHT) decides what you pay. Here's exactly what each one means and who qualifies.

How demand charge (load × rate) works in Bangladesh

Sanctioned load, the demand-charge formula, when to apply for a load change, and why trimming a small load often beats months of unit savings.

Appliance cost calculator

Enter wattage and daily run-hours for any appliance to see exact cost per day and per month at the current Bangladesh tariff. Covers single appliances and full-home loads.