The new electricity rate system that is "cheaper in the daytime and more expensive in the evening" will be applied to business sites that use large amounts of power starting on the 16th. The new rate system will also apply to electric vehicle charging fees. At the same time, starting this weekend, electric vehicle charging fees and industrial electricity rates between 11 a.m. and 2 p.m. will be discounted by half.
The Ministry of Climate, Energy and Environment said on the 14th that it will soon implement the "seasonal and time-of-use electricity rate reform plan." The ministry said, "It will help overcome the energy crisis triggered by the 'Middle East war' by fully using solar power generated during the day and reducing electricity produced in the evening by liquefied natural gas (LNG) plants."
Earlier, the government released a reform plan for electricity rates in which, on weekdays, a mid-level rate (medium load) is charged from 8 a.m. to 3 p.m., and a peak rate (maximum load) from 3 p.m. to 9 p.m. Until now, the peak rate applied from 11 a.m. to noon and from 1 p.m. to 6 p.m., and the mid-level rate from 6 p.m. to 10 p.m. The reform aims to encourage power consumption during daylight hours. On spring and fall weekends and holidays during the daytime, when power supply is abundant, 50% of the energy charge is discounted.
The new electricity rate system applies to "industrial (B)," which accounts for 46% of national power consumption. Industrial (B) mainly covers business sites that use large amounts of power, while industrial (A) targets small general factories and applies a simple rate system. A ministry official said, "With this new electricity rate reform, their average rate reduction effect will be about 1.7 won per kWh," adding, "The discount effect will be greater for small and midsize companies than for large corporations that operate 24 hours."
However, 514 business sites that applied for a prior grace period will continue to be charged under the existing rate system until Sept. 30. They account for about 1.3% of industrial (B) customers. The share of corporations that applied for the grace period was highest in food, primary metals and nonmetallic minerals, in that order.
The new reformed rates and spring and fall weekend discounts will apply equally to electric vehicle charging. At about 94,000 "self-consumption charging stations" installed at dwellings and companies, a 50% rate discount will take effect immediately on the 18th. Vehicles charging between 11 a.m. and 2 p.m. on weekends and holidays from March to May and September to October are eligible. A discount of 40.1 to 48.6 won per kilowatt-hour (kWh) will apply. At about 13,000 "public fast chargers" operated by the government, 48.6 won per kWh will be discounted on Saturdays and 42.7 won on Sundays and holidays.
A ministry official said, "For categories other than industrial (B)—industrial (A)-II, general (A)-II, general (B), and educational (B)—the reform plan is scheduled to take effect starting June 1," adding, "For dwellings, we also plan to expand the scope of seasonal and time-of-use rates, but we are not at the stage of planning nationwide implementation immediately."