Gov't revises electricity rates for industrial use to ease burden on companies
Electricity meters at a building in Seoul / Yonhap
The government on Friday revised the electricity rate system for industrial use to help ease the cost burden of corporate power consumption.
Under the plan endorsed by the Electricity Regulatory Commission, the peak electricity rate for daytime will be cut by up to 16.9 won per kilowatt-hour (kWh), while the peak rate for nighttime will go up by 5.1 won per kWh, according to the Ministry of Climate, Energy and Environment.
In detail, the peak daytime rate will be reduced by 16.9 won during summer and winter, and by 13.2 won in the spring and autumn season. The new rates will take effect April 16.
The scheme was designed to lower rates for daytime and increase rates for nighttime, as part of efforts to lower the cost burdens of companies. The Korea Electric Power Corp. raised the rate for industrial use by 9.7 percent in October 2024 to cope with its financial troubles.
It is also structured to change the current scheme, designed to suppress daytime consumption while encouraging nighttime usage, while reflecting the expanding use of renewable energy sources, the ministry explained.
It marks the first time Korea revised the system for industrial use since its introduction in 1977.
In addition, power usage between 11 a.m. and 2 p.m. on weekends and holidays in spring and autumn will be subject to a separate 50 percent discount, as the demand is usually lower during the period, leading to frequent output curtailment.
The ministry said the new pricing system is expected to help around 97 percent of businesses save on their electricity costs, with more a significant cost saving effect anticipated for small and medium-sized enterprises that usually operate during daytime.