[2022 National Audit] "Top 10 Power-Consuming Companies Bought Electricity 4.2 Trillion Won Cheaper Over 5 Years"

Kim Yong-min "Reform Needed for Load-based Discount System"

[Asia Economy Reporter Moon Chaeseok] It has been revealed that the top 10 electricity-consuming companies, including Samsung Electronics and SK Hynix, received approximately 4.2 trillion KRW in electricity bill benefits over five years compared to other companies.

According to data received by Kim Yong-min, a member of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee from Korea Electric Power Corporation (KEPCO) on the 4th, the average electricity purchase price per kWh for the top 10 electricity-consuming companies such as Samsung Electronics over five years was 94.44 KRW. This was confirmed to be 12.21 KRW cheaper than the industrial electricity rate of 106.65 KRW.

Specifically, for Samsung Electronics, the number one consumer, the total industrial electricity sales price per kWh was 105.48 KRW last year, but they only paid 94.83 KRW. Kim stated that Samsung received a discount of 196 billion KRW compared to the average general company last year. The 196 billion KRW is calculated by subtracting Samsung’s purchase price of 94.83 KRW from the industrial electricity price of 105.48 KRW and multiplying by Samsung’s electricity usage of 18.4 TWh.

When expanding the survey target to the top 10 companies and comparing the electricity rates over the past five years with the general industrial rates to calculate the difference, Kim reported that the total reached 4.2 trillion KRW.

Kim argued that the reason large corporations can purchase industrial electricity at a lower sales price despite using the same industrial electricity is because most of them benefit from the off-peak rate system. The off-peak rate system offers discounts on electricity bills when electricity is used during cheaper time periods.

Kim claimed that the discount rate is set excessively high, resulting in industrial electricity discounts favoring large corporations that have relatively higher ability to adjust operating hours and electricity usage.

Kim said, "Although KEPCO’s deficit has greatly increased due to rising energy import prices, large corporations are receiving enormous privileges through off-peak rate discounts and other benefits. While the recent electricity rate reform includes an overall increase in electricity rates, it is necessary not only to raise industrial electricity rates uniformly but also to reform the off-peak discount system."