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Korean government to introduce new electricity bill system aiming to reduce financial burden by…

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During the record heatwaves this past summer,
nearly 3 million households in Korea got a rather unpleasant surprise on their electricity
bill… due to the nation’s progressive billing system, which charges higher rates the more
you use. The government’s now looking to change the
system… with the goal of cutting utility bills by an average of 11 percent… starting
as soon as December 1st. Kim Hyo-sun explains. The Korean government announced Thursday,…
that it will introduce a new residential electricity price system aimed at easing financial burden
for households. The Ministry of Trade, Industry and Energy
presented to the National Assembly,… three alternatives of the new three-stage program
from the current six-tier system,… which is expected to lower the electricity bill
by an average of 11 percent. Currently,… local households pay 60 Korean
won or 0.05 U.S. dollars per kilowatt for the first 100 kilowatts used,… but pay 0.11
dollars for the next 100 kilowatts,… and for the last tier of over 500 kilowatts,…
they are charged a whopping 0.6 dollars per kilowatt. In other words, based on the power usage,
users are charged based on the cumulative rate,… with the top rate being more than
11 times higher compared to the lowest one. However,… under the first alternative proposed
by the ministry, and still based on the fundamental principle of the progressive pricing system,…
households will be charged 0.09 dollars per kilowatt for the first 200 kilowatts; from
201 to 400 kilowatts used,… they will be charged the average unit price of 0.11 dollars,…
and 0.26 dollars per kilowatt above that. This will help households save electricity
cost by 10.4 percent on average. The second plan eliminates the cumulative
rate on energy consumption,… and it is expected to reduce the utility bills by 11.5 percent,…
charges 0.05 dollars for the first 100 kilowatts used, 0.11 dollars from 101 to 200 kilowatts,
and 0.16 dollars per kilowatt above 201 kilowatts. The last alternative, which is a mixture of
the first and second plans,… charges 0.08 dollars for the first tier,… 0.16 dollars
per kilowatt from 201 to 400 kilowatts used,… and 0.24 dollars for the last tier. This,… evaluated to be the most fair and
viable system pf the three,… alleviates household burden by 11.6 percent, while providing
a monthly 47 percent discount for heavy electricity users who consume over 800 kilowatts per month. The government will also provide price benefits
for vulnerable households, including those in the low-income bracket and families with
newborns. Once finalized,… the new system will be
applied retrospectively starting from December 1st. Kim Hyo-sun, Arirang News.

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1 thought on “Korean government to introduce new electricity bill system aiming to reduce financial burden by…”

  1. Pocket Money says:

    good

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