Promoting a Regional Differential System for Industrial Electricity Rates
Reducing the burden of industrial electricity rates and enhancing manufacturing competitiveness through a regional differential pricing system An plan that lowers rates near power plants and raises them in the Seoul metropolitan area has been unveiled, drawing attention
Minister Kim Sunghwan of the Ministry of Climate, Energy and Environment said that it is necessary to reduce the burden of industrial electricity rates to strengthen industrial competitiveness. The Ministry of Climate, Energy and Environment plans to soon release a plan for a regional differentiated electricity rate system.
At a press briefing held at the Government Seoul Office Complex on the 4th, Minister Kim said that due to electricity rate hikes under the previous administration, industrial electricity rates have become among the highest. He explained that rates need to be brought down and stabilized, taking into account the competitive conditions of domestic manufacturing.
The regional differentiated rate system under review by the ministry would lower rates in areas near power plants and set higher rates in areas farther from transmission, such as the Seoul metropolitan area. The government plans to design the system by considering transmission network costs, power selfsufficiency, and balanced national development together, and to gather opinions at a public hearing.