Industrial electricity rates cut by 16.9 won per kWh during the day, raised by 5.1 won at night

[The Financial News] Industrial electricity rates during daytime hours will be reduced by up to 16.9 won per kilowatt-hour (kWh), while nighttime rates will be increased by 5.1 won per kWh.
The Ministry of Climate, Energy and Environment and Korea Electric Power Corporation (KEPCO) announced on the 13th, after a review by the Electricity Commission, a "revised seasonal and time-of-use electricity tariff plan" reflecting these changes.
This overhaul of industrial electricity tariffs is the first adjustment to the seasonal and time-of-use rate structure in 49 years, since time-differentiated pricing was introduced for industrial users in December 1977.
The new plan has been designed to reflect the growing share of renewable energy in power generation. Under the existing industrial tariff system, the structure discouraged electricity use during the day and encouraged consumption at night.
That structure was effectively built on the assumption of power sources such as coal-fired plants, whose output does not vary much between day and night. Under the revised plan, the current "peak load" band—spring, summer and autumn from 11 a.m. to noon and from 1 p.m. to 3 p.m.—will be reclassified as a mid-peak period.
Instead, the 6 p.m. to 9 p.m. band will be moved from a mid-peak period to the peak period. At the same time, the highest rate applied during peak periods will be lowered by 16.9 won per kWh in summer and winter and by 13.2 won in spring and autumn, for an average reduction of 15.4 won.
The minimum rate applied during off-peak hours—defined in spring, summer and autumn as 10 p.m. to 8 a.m. the following day—will be raised by 5.1 won per kWh. The power authorities also decided to offer a 50% discount on electricity charges from 11 a.m. to 2 p.m. on weekends and public holidays in March to May (spring) and September to October (autumn) for the next five years, until December 31, 2030. The aim is to cut prices during periods when renewable generation is high and supply exceeds demand, in order to stimulate consumption. The ministry and KEPCO have also left open the possibility of extending the discount period if industry shifts more of its electricity use to spring and autumn weekends and holidays.

leeyb@fnnews.com Lee Yu-beom Reporter