Going forward, industrial electricity rates will be cheaper during daytime hours and more expensive in the evening. This reflects the recent increase in solar power that leaves surplus electricity during spring and fall days, leading to more output curtailment, while demand concentrates in the evening. The aim is to induce electricity consumption during the day.
The Ministry of Climate, Energy and Environment and Korea Electric Power Corporation (KEPCO) on the 13th announced a "seasonal and time-of-use electricity rate overhaul" after a review by the Electricity Commission.
◇ Daytime, previously the most expensive, changed to "mid-rate," evening to "peak rate"
The adjustment will mainly apply to "Industrial (B)" customers, who are heavy users among industrial consumers.
Weekdays going forward, mid rates (intermediate load) will apply from 8 a.m. to 3 p.m., and peak rates (maximum load) will apply from 3 p.m. to 9 p.m. Previously, peak rates applied from 11 a.m. to 12 p.m. and 1 p.m. to 6 p.m., while mid rates applied from 6 p.m. to 10 p.m.
At the same time, during nighttime when the lowest rates (off-peak) apply, the per-kilowatt-hour (kWh) charge will be raised by 5.1 won, while the peak rates (maximum load), which mainly apply in the afternoon and evening, will be cut by 16.9 won in summer and winter and by 13.2 won in spring and fall. Mid rates (intermediate load) will not be adjusted.
However, this is based on spring, summer, and fall weekdays; different rate structures apply in winter and on Sundays and holidays. In spring (March–May) and fall (September–October), rates will be discounted 50% from 11 a.m. to 2 p.m. on weekends and holidays.
The overhaul will take effect on Apr. 16. However, corporations that apply for a grace period will be granted additional time to prepare through Sept. 30.
According to a government analysis, electricity rates for about 97% of corporations subject to Industrial (B)—more than 38,000 business sites—are expected to fall by an average of about 1.7 won per kWh.
◇ From June 1, systems for general and educational users will also be adjusted
Meanwhile, other time-of-use rate systems—such as Industrial (A) II, general, and educational—will also be adjusted by "lowering daytime rates and raising evening rates." The overhaul will apply to these plans starting June 1.
For electric vehicle charging rates, time-of-use adjustments will be implemented along with a 50% discount during daytime on spring and fall weekends. This will take effect on Apr. 16.
Detailed information on the overhaul can be found starting on the 16th on the KEPCO (kepco.co.kr), KEPCO ON (online.kepco.co.kr), and Power Planner (pp.kepco.co.kr) websites and apps (applications).