Time-of-use (TOU) tariff explained
Several Bangladesh tariff categories don't bill every unit at the same price — the rate depends on the clock. This guide explains the peak, off-peak and super off-peak windows, who is actually billed this way, and how to work out whether it helps or hurts you.
Time-of-use (TOU) billing splits a day into pricing windows so that units consumed during high grid demand cost more than units consumed when demand is low. It exists to smooth the national load curve, not to punish any one consumer — but whether it saves or costs you money depends entirely on when your connection actually draws power. This guide is informational; always confirm your exact category and billing window with your distribution utility.
On this page
Peak, off-peak and super off-peak windows
Bangladesh's TOU categories use up to three pricing windows in a 24-hour cycle. Rates within each window are set per tariff category (see the tariff page for exact figures), but the clock windows themselves are shared across categories.
| Window | Time | Note |
|---|---|---|
| Peak | 5:00 PM – 11:00 PM | Highest rate. Avoid AC, geyser, iron and pumps here. |
| Off-peak | 11:00 PM – 5:00 PM (next day) | Standard discounted rate for TOU meters. |
| Super off-peak | 5:00 AM – 9:00 AM | Cheapest window, applies to LT-D3 and MT-7 charging stations only. |
Which categories are TOU-billed
Not every connection sees peak/off-peak pricing. Residential LT-A, agricultural LT-B and most flat-rate categories are unaffected. TOU applies to:
| Category | Who it covers |
|---|---|
| LT-C1 | Small Industry |
| LT-D3 | EV & Battery Charging Station |
| LT-E | Commercial & Office |
| MT-1 to MT-8 | All medium-tension (11kV) categories except construction/temporary flat rates |
| HT-1 to HT-4 | All high-tension (33kV) categories |
| EHT-1, EHT-2 | All extra-high-tension categories |
In short: nearly everything above household scale — small industry, commercial premises, and any connection at 11kV or higher — is billed on TOU by default, because that's where load-shifting has the biggest impact on the grid.
Who benefits, who loses
TOU is a bet on your own load profile, not a universal discount. It rewards connections that can move consumption away from the evening peak and penalises connections that can't.
- Benefits: factories running day shifts, cold storage that pre-cools overnight, EV/battery charging stations, offices that close before 5 PM, irrigation pumps run at dawn.
- Loses out: restaurants and retail busiest in the evening, offices that run generators or AC into the evening, any commercial premises whose peak business hours coincide with 5–11 PM.
Worked example: a small factory
An LT-C1 small factory uses 4,000 units a month. Peak rate is ৳15.27/unit and off-peak is ৳11.45/unit.
- Day-shift factory (10% of units in peak): 400 units × ৳15.27 + 3,600 × ৳11.45 = ৳6,108 + ৳41,220 = ৳47,328 in energy charges.
- Evening-shift factory (60% of units in peak): 2,400 × ৳15.27 + 1,600 × ৳11.45 = ৳36,648 + ৳18,320 = ৳54,968 in energy charges.
Same total consumption, same category — but shifting the shift schedule alone is worth roughly ৳7,600 a month, before VAT and demand charge.
Worked example: a household
An MT-1 residential complex (11kV) uses 500 units a month. Peak rate is ৳15.62/unit, off-peak ৳11.25/unit.
- Typical household pattern (35% peak — evening cooking, AC, lights): 175 × ৳15.62 + 325 × ৳11.25 = ৳2,734 + ৳3,656 = ৳6,390.
- Shifted pattern (20% peak — laundry and geyser moved to morning): 100 × ৳15.62 + 400 × ৳11.25 = ৳1,562 + ৳4,500 = ৳6,062.
The saving here is smaller — around ৳330 a month — because household evening usage (cooking, lighting, cooling) is harder to move than industrial or commercial load. This is exactly why standard LT-A homes are not put on TOU by default: for most households the peak load is largely unavoidable.
Load-shifting tactics
- Run washing machines, dishwashers and ironing before 5 PM or after 11 PM.
- Schedule water pumps and irrigation for the early morning off-peak or super off-peak window.
- Pre-cool cold storage, warehouses or server rooms during the day so less cooling is needed in the evening.
- Charge EVs, easy-bikes and backup batteries overnight or during the 5–9 AM super off-peak window where it applies.
- Stagger factory shifts so heavy machinery runs mornings rather than evenings.
- Use timers or smart plugs on geysers and pool/aquarium pumps so they can't accidentally run through peak hours.
How to apply for a TOU meter
You generally don't apply for TOU pricing directly — it comes bundled with your tariff category. To move onto (or off) a TOU-billed category:
- Confirm your actual usage pattern qualifies for the category you want (industrial use for LT-C1, EV charging for LT-D3, etc.).
- Submit a category-change or new-connection application at your local DESCO, DPDC, NESCO, BPDB, WZPDCL or Palli Bidyut office with trade licence or usage evidence.
- The utility inspects the premises and sanctioned load before approving the change.
- A TOU-capable smart meter is installed or your existing smart meter is reconfigured — this can take a few weeks depending on the utility's meter stock.
- Your next bill (or prepaid recharge split) will reflect the new peak/off-peak rates.
Key takeaways
- • Peak is 5–11 PM, off-peak covers the rest of the day, super off-peak (5–9 AM) applies only to LT-D3 and MT-7 charging stations.
- • Nearly all MT, HT and EHT categories are TOU-billed by default; standard residential LT-A is not.
- • TOU rewards connections that can move load off the evening peak — factories and charging stations more than households.
- • The demand charge doesn't change with TOU; only the per-unit energy rate does.
- • You can't opt into or out of TOU independently of your tariff category.
Frequently asked questions
Is TOU billing optional for residential connections?
Standard LT-A residential connections are billed on the flat progressive slab, not TOU. Only larger residential complexes taking supply at 11kV (MT-1) are billed on TOU by default. A household cannot usually opt into TOU voluntarily unless it takes an MT connection.
Does the peak window change on Fridays or public holidays?
No. The 5:00 PM–11:00 PM peak window is defined by clock time, not by day of the week, so weekends and holidays are billed the same as weekdays.
Why is super off-peak only for LT-D3 and MT-7?
The super off-peak rate exists specifically to encourage EV and easy-bike battery charging during the 5:00–9:00 AM window, when national grid demand is lowest. Other TOU categories only have a peak and an off-peak rate.
Can I switch back from TOU to flat billing if it doesn't help?
If your category is inherently TOU-billed (LT-C1, LT-E, or any MT/HT/EHT category), you cannot opt out — the rate structure is tied to the tariff category, not chosen separately. You could apply for a category change if you genuinely believe your connection is misclassified.
Do prepaid TOU meters show which window I'm in right now?
Most smart TOU meters display a peak/off-peak indicator on the local screen and log time-stamped consumption that the utility can print on request. Check your meter's display manual or ask your utility's helpline for the indicator symbols.
Does the demand charge also vary by time of day?
No. The demand charge is a flat monthly fee based on sanctioned load regardless of when that capacity is used — only the energy (per-unit) charge is split into peak and off-peak rates.
See the full rate tables on the tariff page, run the numbers on the bill calculator, or compare recharge structures with the prepaid vs postpaid calculator.