The national government has revised the electricity pricing system to temporarily ease the progressive electricity rates for the month of July and August.

This will let each of 16 million households to get a 10,000 won discount on its electric bill on average during the hot summer season.

Joseph Kim reports.


Joseph Kim reports.

The government adopted a three tier rating system for residential power usage, which creates a large difference in electricity bills for homes using a lot and those that use it sparingly.

[slug] Progressive electricity rates to be eased during July and August

The national government has decided to temporarily ease the progressive electricity rates to help households for the month of July and August when the relentless summer heat wave hits the peninsula.



It charges users based on three categories. The rate charged for electricity increases progressively based on the amount used.

It’s 93.3 won per kWh(kilowatt hours) for the category of less than 200 kWh. It’s 187.9 won per kWh for the category of between 201 and 400 kWh, and 280.6 won per kWh for usage over 400 kWh.

The government is raising the ceiling for the first two pricing tiers for July and August by 100 kWh to 50 kilowatt hours, respectively.


Pricing Tiers to be Eased
(Source: Ministry of Trade, Industry and Energy)

The amount used (kWh)
Price (won)

grey graph=other seasons
red graph=summer




[slug] 10,000 won discount on average

When the temporary change is applied, each of the 16 million households can receive a 10,000 won discount.

INTERVIEW
Lee Gae-myeong / Professor, Jeju National University
If the first and second pricing tiers are extended as planned, the electricity bills will decrease by one fourth.
<인터뷰 : 이개명 / 제주대학교 전기공학과 교수>
"낮은 전기요금이 적용되는 1~2구간이 확대됨으로써 전체적으로 요금이 4분의 1 정도 줄 것으로 보입니다."



If an air conditioner runs for two hours a day per month at a house of which average power use is 220 KWh, about 10,000 won will be cut.

If an air conditioner is on for four hours a day per month at the same house, 21,000 won will be cut.


if Air Conditioner runs for 4 hrs/day
(Assuming power consumption:1800 W, power use: 220 KWh (w/o AC))
Other months July, August
\83,720 \62,690

\21,030 ↓












If Air Conditioner runs for 2 hrs/day
(Assuming power consumption:1800 W, power use: 220 KWh (w/o AC))

Other months July, August
\50,370 \39,610

\10,760 ↓






Meanwhile, the Korea Electric Power Corporation (Kepco), a state-run utility firm responsible for distributing electricity and sending bills to households is expected to shoulder 300 billion won of the financial burden.

[Reporter] Joseph Kim
[CAmera] Park Byeong-june
[CG] Kim Eun-kyo

The board of directors of the corporation discussee the temporary measure and postponed it. If it’s passed, the change will be applied beginning next month.

Joseph Kim, KCTV