Progressive Rate Of Household Electricity Charge To Be Reduced

Progressive rate of the household electricity charge is to be reduced during this year. The maximum 18 times higher charge difference depending on the amount of electricity usage could be made according to the current progressive stage system on the household electricity charge make.

As early as the first half of next year, the government will reform the current electricity charge system, which charges electricity usage by the category of use, such as household electricity, industrial electricity, educational electricity, and agricultural electricity, to a system that charges according to the amount of usage.

Kim Dong-Won, the head of the resource policy office in the Ministry of Commerce, Industry and Energy (MCIE), said that ``for the preparation of privatization of the electricity industry, the government decided to change the electricity charge system during the first half of next year. The new electricity charge system will fully reflect the cost of the electricity. Prior to this, the government plans to prepare a complementary measure for the progressive stage system on the electricity charge and the late-night electricity charge in November.``

Prior to this, Jang Jae-Shik Minister of the MCIE said at the executive members` meeting that ``although the purpose of the progressive stage system on the electricity charge is good, which was introduced last November, consumers are dissatisfied with the system due to the differences in the progressive rate according to the amount of usage. Therefore, a plan should be considered to reduce the progressive stages as well as the progressive rate.``

The MCIE plans to reorganize the progressive stage system on the electricity charge to 5 stages and to reduce the progressive rate to decrease the electricity charge within the range of 12 time-difference by dividing the current electricity usage into 7 stages. According to the current progressive stage system on the household electricity charge, the maximum18 times higher charge can be made depending on the amount of electricity usage.

Kim Sang-Chul sckim007@donga.com