Gas Corporation Provides 3 Billion KRW Gas Fee Reduction to 25,000 Welfare Facilities Last Year

"Reduce Heating Cost Worries"... 'City Gas Rate Reduction System'
Accessible to Vulnerable Groups Including Disabled and Low-Income
Continuous Efforts for Efficiency Improvement Targeting Energy Suppliers

[Asia Economy Reporter Kim Bo-kyung] Last year, approximately 25,000 social welfare facilities benefited from gas fee reductions totaling 3 billion KRW through Korea Gas Corporation's 'City Gas Fee Reduction Program.'

According to the Gas Corporation on the 7th, a total of 25,270 social welfare facilities received fee benefits under the city gas fee reduction program last year, with the amount of fee benefits reaching 2.98 billion KRW (cumulative from January to November). In 2018, a total of 23,535 welfare facilities received fee benefits amounting to 4.087 billion KRW.

As winter sets in, gas fees become a considerable burden for welfare facilities housing socially vulnerable groups such as the elderly and disabled. The city gas fee reduction program was launched in 2001 to minimize such energy welfare blind spots and has been operating for 20 years.

The Gas Corporation provides fee reduction benefits not only to facilities for the disabled, children, and the elderly but also to single-parent family welfare facilities and mental health care facilities. Gas fees for these facilities are calculated at about 20% cheaper industrial rates. To receive fee reductions, social welfare facilities must obtain a copy of the welfare facility registration form from the relevant institution and submit it along with the reduction application to the local city gas company.

Severely disabled individuals, recipients of livelihood, medical, housing, and education benefits, and low-income groups can reduce their gas fees through the 'Social Consideration Recipient Fee Reduction Program.' By submitting an application to the local city gas company or community center, they can receive fee reductions. In 2018, the total amount of fee reductions for social consideration recipients reached 83.171 billion KRW, benefiting 1.266 million households. Last year, 1.296 million households received fee benefits amounting to 80 billion KRW (January to November basis).

Additionally, the 'Energy Efficiency Resource Standard (EERS)' pilot program operated by the Gas Corporation is expected to lead to substantial gas usage reductions through advanced energy efficiency. EERS assigns energy-saving targets to energy suppliers through efficiency improvements, and after the pilot period ends, incentives or penalties will be imposed based on compliance. This is expected to reduce the fee burden for households and businesses while improving air quality.

The Corporation aims to save 50.2 Tcal (3,848 tons) of energy last year’s mandatory reduction target by supporting the installation of existing combined heat and power generation facilities, improving heat efficiency for vulnerable groups, supporting the replacement of industrial and building boilers, supporting home boiler replacements for vulnerable groups, conducting a smart meter (AMI) demonstration project in areas with difficult meter readings, and operating EERS.

A Corporation official stated, "In the case of industrial boilers, replacing them with high-efficiency equipment can directly reduce gas usage," adding, "An average annual usage reduction of 4% is expected, which translates to an annual fee reduction effect of about 10 million KRW."

This content was produced with the assistance of AI translation services.