In the government's region-based differential system for industrial electricity rates, the gap between zones is expected to widen by up to 18 won per kWh.
According to the government on the 13th, the Ministry of Climate, Energy and Environment, at a closed-door roundtable the previous day with power-intensive corporations, unveiled for the first time a "region-based differential plan for industrial electricity rates." Based on the current industrial average rate of about 182 won per kWh, the plan would cut rates by up to 18 won in the southern regions such as Yeongnam and Honam, and by up to 15 won in the central regions such as Gangwon and Chungcheong. The discount in the southern regions would be around 10% of the rate.
The Seoul metropolitan area was divided into north and south. The northern zone, including Incheon and northern Gyeonggi, would see cuts of up to 10 won, but the southern zone, where power demand is concentrated, would not receive a meaningful discount. In that case, even for the same industrial electricity, the price gap between the southern regions and southern metropolitan area would widen by up to 18 won per kWh.
Procedures such as a meeting with power generators and a public hearing remain, but if the overhaul is finalized, corporations making large-scale investments outside the metropolitan area, including the three megaprojects, are expected to see significant reductions in fixed costs.