Proposal Delivered for Implementing Regional Electricity Rates
Based on Electricity Self-Sufficiency Rate
Chungnam Province has recently urged that the regional differential electricity rate system, which the Ministry of Trade, Industry and Energy announced would be applied based on metropolitan units, should instead be based on the electricity self-sufficiency rate rather than the metropolitan unit.
According to the province on the 2nd, on this day, five cities and provinces?Chungnam Province, Incheon City, Gangwon Province, Jeonnam Province, and Busan City?delivered a proposal to the Ministry of Trade, Industry and Energy titled "Request for the Implementation of a Regional Differential Electricity Rate System Considering Electricity Self-Sufficiency Rate."
The regional electricity rate system is based on the Special Act on the Promotion of Distributed Energy, which allows Korea Electric Power Corporation to apply different electricity rates by region for balanced development. The Ministry of Trade, Industry and Energy announced during a parliamentary audit in October last year that the differentiated regions would be divided into three zones: the Seoul metropolitan area, non-metropolitan areas, and Jeju area.
In response, the province argues that the differential rate system should be based on the electricity self-sufficiency rate, which can reflect differences in supply costs such as transmission and distribution expenses, rather than a uniform regional standard.
An official from the province stated, "Last year, through discussions with four provinces with high electricity self-sufficiency rates, we prepared a consensus on the criteria for applying differential electricity rates and completed an agreement with signatures from the heads of local governments," adding, "In order for electricity-intensive companies to relocate to regions with high electricity self-sufficiency rates, government-level incentives are necessary."
The five cities and provinces emphasized in their proposal, "The regional differential electricity rate system should be designed so that electricity-intensive companies in high-tech strategic industries can relocate to regions with high electricity self-sufficiency rates," and urged, "Promote a rate system that aligns with the purpose of regional electricity rates, which is to foster balanced national development through the activation of distributed energy."
Going forward, the province plans to jointly hold a National Assembly forum with the five cities and provinces and begin persuading central government ministries and related organizations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
