Reviewing an adjustment to residential electricity rates, a voucher 8,000 hundred million to 1 trillion won under review

President Lee Jae-myung said at the National Fiscal Strategy Meeting on 7 the 13 day of the month that an adjustment to residential electricity rates could be reviewed. He explained that adjustments to residential rates could have a direct effect on the power-cost structure of industry and households.

Minister of Climate, Energy and Environment Kim Sung-hwan said the same day that the government plans to pilot the residential time-of-use electricity tariff in Jeju Island and then expand it nationwide. He added that the time-of-use tariff is currently applied only to industrial use.

Minister Kim explained the country’s electricity tariff structure, saying industrial electricity rates are at about 180 won, while residential rates are in the 160 won range. He pointed out that this is why some internationally competitive industries, including steel and petrochemicals, are facing difficulties.

The government said a voucher scheme is being considered as a way to ease the burden on low-income households when adjusting household rates. The related support scale was proposed at 8,000won from 1a level below the trillion-won mark.

At the meeting, the expansion of air-source heat pump deployment and the need to maintain initial subsidies were also discussed. The government said deployment speed should be increased and initial subsidies should be maintained at a sufficient level.

Both remarks came from the 7month of 13National Fiscal Strategy Meeting. The government plans to announce the specific implementation timing and detailed items later.