A green light has been given to the introduction of an electricity tariff system that varies according to distance by region.
Chungnam Province announced on the 28th that the "Special Act on the Activation of Distributed Energy," which includes this provision, was recently approved at the full meeting of the Industry, Trade, and Small and Medium Venture Business Committee.
The special act contains the basis for setting different electricity rates by region. This has been one of Chungnam's long-standing wishes, and the province has been advocating for the introduction of this tariff system since 2014.
Once the special act is implemented, the province expects that areas with many power plants will receive basic electricity fee benefits and have opportunities for balanced regional development, such as attracting businesses.
Chungnam is the largest cluster of coal-fired power plants in the country (29 out of 58 nationwide) and produces the most electricity.
However, residents near the coal power plants have had to endure physical and mental harm for decades due to fine dust, transmission lines, and large transmission towers within living areas.
The reason Chungnam has regarded the introduction and implementation of the special act as a long-standing wish is precisely this. Despite the long-accumulated damages, the benefits returned to the region have been almost none.
In this regard, the province plans to prepare detailed plans for covering social costs associated with the concentration of coal power plants and a "regional distance differential system" based on transmission distance, which it has been advocating, and propose them to the Ministry of Trade, Industry and Energy.
The special act is scheduled to be implemented in April next year. Previously, since 2014, the province has been promoting the reform of a "fair electricity tariff system" that reflects social costs.
The fair electricity tariff system reflects the fact that the past centralized power generation policy focused on coal and nuclear power caused polarization between regions in power production and consumption (53% of Chungnam's produced power is transmitted to other regions), and that special sacrifices (estimated at 7.5 trillion KRW annually) have been imposed only on large-scale power production areas.
Yoo Jae-ryong, Director of the Industry and Economy Office of the province, said, "If different electricity tariff systems are applied according to the regional power self-sufficiency rate, it will help suppress excessive power use and encourage each local government's efforts to improve energy independence," adding, "We will do our best until the end to ensure that the province's opinions are actively reflected when the Ministry of Trade, Industry and Energy and Korea Electric Power Corporation revise the 'Electricity Supply Terms and Conditions.'"
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