Lee Yongguk Urges "In the Era of Essential Heating and Cooling, Soaring Electricity Bills Threaten the Right to Survival"
Calls for a Dedicated Rate System for Small Business Owners and Simplification of the Progressive Rate to Two Stages
The Chungnam Provincial Council has called on the government to completely overhaul the residential electricity progressive rate system, which has remained based on standards from the 1970s. The council is demanding the introduction of a dedicated rate system for small business owners and the easing of the progressive rate, emphasizing the need for fundamental institutional reforms to alleviate the electricity bill burden on low-income households and small-scale self-employed individuals.
On September 2, during the first plenary session of the 361st extraordinary meeting, the council adopted the "Proposal for Electricity Rate Reform and Support for Small Business Owners," sponsored by Assemblyman Lee Yongguk (Seosan 2, People Power Party).
Assemblyman Lee pointed out, "The residential electricity progressive rate system, introduced after the first oil shock in 1974, has maintained the standard of 'excessive consumption above 450 kWh' for eight years since 2018, but this no longer reflects current realities."
He emphasized, "With heat waves and cold snaps recurring every year, the use of heating and cooling systems has become essential. On top of this, the COVID-19 pandemic and high interest rates have pushed the burden on low-income households and small business owners to the limit. The surge in electricity bills is not just an increase in living expenses; it is threatening the right to survival."
Regarding small business owners in particular, he noted, "Most are subject to general electricity rates, which means a significant portion of their net profits is consumed by electricity costs. For restaurants, cafes, and supermarkets that must operate refrigeration and freezing equipment 24 hours a day, reducing electricity usage is simply impossible."
He added, "Ultimately, this burden leads to higher prices, which are passed on to consumers, creating a vicious cycle."
The proposal includes: simplifying the current three-stage residential electricity progressive rate to two stages; introducing a dedicated rate system for small business owners and self-employed individuals along with a discount section for a certain amount of usage; and implementing a flexible rate system based on peak summer and winter hours.
Assemblyman Lee reiterated, "The progressive rate system, originally introduced to encourage energy saving, has now become a system that hinders low-income households and small business owners. Rather than temporary fixes, we must pursue fundamental institutional reforms to guarantee the basic right to survival for the people and management stability for small business owners."
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