Energy Cashback Applications Open from the 7th... Reduce Usage by 10% to Pay Less Than Pre-Increase Electricity Bills

Up to 100 KRW Refund per 1kWh Next Month... Savings from July Start
Retroactive Application Even if Applied in August

Korea Electric Power Corporation (KEPCO) will start accepting online applications for the Energy Cashback program from the 7th to ease the burden of electricity bills on the public. The Energy Cashback program is a system that reduces electricity bills if electricity usage is decreased after applying.

KEPCO announced in a press release on the 7th, "For the July billing period only, applications will be accepted in advance from June, and customers who apply by August 31 will also receive retroactive benefits." Although the principle is to apply the Energy Cashback for residential use from the month of application, this policy is to prepare for a surge in applications.

Accordingly, starting from the electricity savings for the July billing period, if usage is reduced by 5% or more compared to the average of the same month over the past two years, customers can receive up to 100 KRW per kWh depending on the reduction rate. This is because, in addition to the basic cashback of 30 KRW per kWh saved, an additional 'differential cashback' of 30 to 70 KRW will be added. From next year, the differential cashback will be adjusted to 30 to 50 KRW.

The cashback will be credited by deducting it from the next month's electricity bill. Previously, customers could choose to receive the cashback in cash, donation, or as a deduction on their electricity bill on a semi-annual basis, but to maintain motivation for reduction, the system has changed to provide rewards immediately in the month following the reduction.

A KEPCO official explained, "If electricity usage is reduced by 10% or more compared to the average of the same month over the past two years, it was found that the electricity bill is lower than last year." For example, if a four-person household with a summer monthly usage of 427 kWh enrolls in the residential Energy Cashback program and reduces usage by 10%, they will save 3,900 KRW in cashback and 11,180 KRW from reduced electricity usage charges, resulting in a final bill of 65,450 KRW. This means paying about 1,000 KRW less than the previous year.

Individual households living in general houses or apartments who wish to participate in the Energy Cashback program can apply online starting from the 7th. From July, applications can also be made by visiting KEPCO branches.