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Biz News Korea(Eng)
South Korea fixes billing system to cut residential electricity fees
- Collected
- 2016.12.14
- Distributed
- 2016.12.15
- Source
- Go Direct
On Tuesday, the Ministry of Trade, Industry and Energy gave final approval to its committee’s proposal to simplify the six-stage billing for residential use to three.
Under the new billing system, Korean households will pay 93.3 won ($0.08) per kilowatt of electricity for the first 200 kilowatts in a month. The price goes up to 187.9 won per kilowatt for use beyond 200 kilowatts, and to 280.6 won per kilowatt for 401 kilowatts or more. Heavy users who consume more than 1,000 kilowatts a month still face the maximum rate of 709.5 won per kilowatt during the peak winter and summer season.
The ministry said the new billing system will help households save power bills by 11.6 percent on an annual average and 14.9 percent in summer and winter.
For instance, a house of four that consumes about 350 kilowatts a month will be charged 55,080 won instead of the previous bill of 62,910 won. Households which consume 600 kilowatts a month in summer will pay 136,050 won instead of previous 217,350 won. For consumption of 800 kilowatts a month, the bill will be shaved from 378,690 won to 199,860 won, the ministry estimated.
The ministry also decided to give discounts of 10 percent in monthly bills and 15 percent during peak seasons to families who are able to save power by more than 20 percent against the same month of the past two years.
By Seo Dong-cheol
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]