From September, Electricity Charges Will Be Cheaper for Daytime Usage in Jeju

[Sejong=Asia Economy Reporter Kwon Haeyoung] Starting in September, electricity rates in Jeju will be cheaper during the daytime.

On the 26th, the Ministry of Trade, Industry and Energy announced that Korea Electric Power Corporation finalized and announced a plan to revise the time-of-use rate classification standards for the Jeju region.

The time-of-use rate system applies higher rates during periods of high electricity demand and lower rates during periods of low demand, encouraging users to consume electricity at lower costs. Since its introduction in Korea in 1977, the seasonal and time-based classification standards have been adjusted according to changing conditions and are uniformly applied nationwide to large-volume users such as industrial and general users.

In Jeju, the share of renewable energy generation reached 16.2% in 2020 due to the recent expansion of renewable energy supply. With the increase in solar power installations, solar generation covers a significant portion of electricity demand during the daytime, reducing the net load (total load minus renewable energy generation) during the day. Conversely, the time of maximum net load has shifted to the evening after sunset.

Accordingly, the time-of-use rate classification, which was previously applied uniformly nationwide, has been revised specifically for Jeju to reflect the regional net load pattern. The peak load period has been moved to the evening hours (16:00?22:00) when net load is high, the off-peak period remains similar to before (22:00?08:00), and the remaining hours are set as mid-peak (08:00?16:00). According to the revision, daytime electricity rates are 153 KRW per kilowatt (kW) in summer, 122.1 KRW in spring and autumn, and 153 KRW in winter. These represent decreases of 35.8 KRW, 18.6 KRW, and 35.8 KRW respectively compared to previous rates. There is no change in evening electricity rates. The basic charge remains 4,310 KRW per kW, unchanged from the current rate.

This revision will be implemented in Jeju starting September 1 after prior system guidance, electricity meter settings, and IT system updates. It will be mandatory for existing time-of-use rate users (about 3.6% of Jeju electricity users), while the time-of-use optional rate for residential users will be applied upon request.

An official from the Ministry of Trade, Industry and Energy stated, "The customized time zone changes for Jeju and the introduction of the residential time-of-use optional rate will encourage demand shifting to daytime hours when generation is sufficient," adding, "It is expected to improve the efficiency of power facility operations and expand electricity users’ rate choice options."

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