S. Korea Revises Electricity Rates For Industrial Use To Ease Burden On Companies

SEOUL, March 13 (Bernama- Yonhap) -- The South Korean government on Friday revised the electricity rate system for industrial use to help ease the cost burden of corporate power consumption, Yonhap News Agency reported.

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 seasons. The new rates will take effect on 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 per cent 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 South Korea has revised the system for industrial use since its introduction in 1977.

In addition, power usage between 11 am and 2 pm on weekends and holidays in spring and autumn will be subject to a separate 50 per cent 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 per cent of businesses save on their electricity costs, with a more significant cost-saving effect anticipated for small and medium-sized enterprises that usually operate during the daytime.

-- BERNAMA-YONHAP