[2020 National Audit] KEPCO President "Strongly Agrees" with Introduction of Electricity Rate Fuel Cost Linkage System

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Kim Jong-gap, CEO of Korea Electric Power Corporation (KEPCO), hinted at the introduction of a fuel cost linkage system related to the electricity rate structure reform on the 15th.

At the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee's audit, when Shin Jeong-hoon, a member of the Democratic Party of Korea, pointed out that "to improve energy inefficiency and avoid passing environmental costs onto future generations, a fuel cost linkage system must be introduced," Kim replied, "I completely agree."

Regarding the criticism that "KEPCO should transparently disclose the cost of electricity rates by usage, which it has not revealed citing trade secrets, to the public," Kim said, "I personally agree 100%. I think the public should know who is paying the proper cost and who is not. However, since government approval is required, I will convey this well to the government and try to make it happen."

Before the audit, during a report to the National Assembly, Kim stated regarding the electricity rate reform, "We will promote the introduction of seasonal and time-of-use rates for residential customers," adding, "Along with the progressive rate system, we will provide optional rate plans to encourage reasonable electricity consumption."

He also said, "We will establish a roadmap for electricity rate structure reform to transition to a reasonable rate system, including promoting a guaranteed essential usage discount system for residential customers."

The guaranteed essential usage discount system offers discounts on electricity bills for households using 200 kWh or less per month. Although introduced to alleviate the electricity bill burden on low-income households, it has been criticized because, contrary to its original purpose, the discount benefits have been concentrated on high-income one- to two-person households that use less electricity.

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