KEPCO Introduces Summer Residential Electricity Bill Discount Program
Includes KEPCO Welfare Discount System and 'Energy Voucher' Support
Offers 'My Home Electricity Bill Preview Service'
The exterior wall of a building in Jung-gu, Seoul is filled with outdoor air conditioning units. Photo by Moon Honam munonam@
[Asia Economy Reporter Kim Bo-kyung] Following last year, consumer burdens will be reduced again this summer due to the revision of the electricity rate tier system. Last year, about 15 million households benefited from discounts totaling 280 billion KRW. This year, electricity bill support measures for energy-vulnerable groups will also be expanded.
Korea Electric Power Corporation (KEPCO) introduced on the 30th the residential electricity rate discount system in preparation for this summer's heatwave. The discount system is broadly divided into ▲relaxation of summer tier rates for all citizens and ▲electricity bill support for energy-vulnerable groups.
Last year, KEPCO announced a plan to continuously ease the tier system for electricity usage during the summer months (July-August) every year.
Accordingly, the same tier system revision as last year will be applied this year, which is expected to alleviate the burden of residential electricity bills for consumers.
The tier system revision is as follows: The first-tier rate (93.3 KRW) originally applied only up to 200 kWh of usage, but with the revision, it will apply up to 300 kWh during July and August. The second-tier rate (187.9 KRW) will apply to 301?450 kWh, which is 50 kWh more than the previous range of 201?400 kWh.
About 14.72 million households benefited during July and August last year, resulting in a total discount effect of 284.3 billion KRW (an average of 9,600 KRW per household per month).
The summer residential tier system relaxation is automatically applied, so consumers do not need to apply separately.
Additionally, KEPCO operates a system that expands the summer discount limits to reduce the electricity bill burden for vulnerable groups such as basic livelihood security recipients and persons with disabilities.
Basic livelihood security recipients, war veterans with disabilities or independence merit, and persons with disabilities currently receive a welfare discount of 16,000 KRW per month, but during summer, the discount limit is raised to 20,000 KRW.
The lower-income bracket receives a monthly discount of 8,000 KRW, which is expanded to 10,000 KRW during summer.
When applying both the tier system revision effect and the expanded welfare discount limit, basic livelihood security recipients can receive discounts of up to 78% on average compared to before the tier revision, resulting in an average monthly electricity bill of 4,800 KRW.
Households that have applied for and are receiving welfare discounts will have the summer discount limit automatically expanded without a separate application. Households that have not applied can apply through KEPCO's call center (123) or KEPCO's website, and the discount will be applied from the current month's electricity bill immediately upon application.
Vulnerable groups meeting certain criteria can receive the government's 'Energy Voucher' in addition to KEPCO's welfare discount system.
The Energy Voucher is a system that supports energy costs for vulnerable groups. Since last year, summer cooling vouchers have been issued, and this year, the cooling voucher amount has been increased from 5,000 KRW to 7,000 KRW (for single-person households).
The summer voucher amount varies depending on the number of household members. The issued vouchers can be used from July 1 to September 30. Any remaining balance after using the summer voucher can also be used for the winter voucher.
Applications for the Energy Voucher start from May 27 and continue until December 31. Applications can be made by visiting the administrative welfare centers in the applicant's registered residential area (eup, myeon, dong). For households that received support last year and have no changes in address or household members, the application is automatically renewed.
KEPCO is implementing an emergency support project that extends the payment deadline for electricity bills for vulnerable groups and small business owners who are struggling due to the COVID-19 pandemic.
Meanwhile, KEPCO provides a 'My Home Electricity Bill Preview Service' reflecting consumer feedback. There were many concerns about not knowing how much the electricity bill would be when running air conditioners in summer due to the inability to check residential electricity usage.
This service can be accessed through KEPCO's website or the Smart KEPCO application. By entering the current meter reading displayed on the individual household's meter, users can check the electricity usage so far, the estimated monthly usage, and the expected electricity bill.
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