"A Home Raising a Baby..." Frowns Over the 'Largest Ever' Electricity Bill Increase

Electricity Rate Increase Ahead of the Hottest July-August
"High Electricity Use for Dehumidifiers... Greater Burden on Families with Children"

As electricity rates rise ahead of the peak energy consumption months of July and August, the financial burden on ordinary citizens is increasing.
[Image source=Getty Images Bank]

[Asia Economy Reporter Yoon Seul-gi] #. Kim, in her 30s, who is raising a 20-month-old baby, is currently stressed about the electricity bill. Running the air conditioner 24 hours a day is essential to prevent heat rash or prickly heat on the baby, but the recent increase in electricity rates has made it a heavy burden.

Kim said, "Since the end of last month, except for 30 minutes of ventilation in the morning and evening, I have been running the air conditioner continuously at 25 degrees Celsius," adding, "Using the air conditioner is a must because of the child. It is kept on not only in the living room but also in the master bedroom. Besides that, I am also using a dehumidifier, air purifier, and dishwasher, and since there is a lot of baby laundry, I run the washing machine and dryer twice a day."

She continued, "Last month, I did not run it fully, so the bill was about 50,000 won, but I am worried about the future," and said, "From now until September, I will have to keep the air conditioner on continuously, but with the electricity rates going up, I am anxious about getting a huge bill." Kim also lamented, "There is an electricity bill discount for families with newborns, but it is a maximum of 16,000 won, so it is better than nothing, but it does not feel like much help."

Citizens are sighing deeply over the electricity rate increase that started this month. With the inflation rate exceeding 6% in June and the ongoing high inflation situation, the increase in public utility rates has further raised the price levels felt directly by ordinary people.

Earlier, on the 27th of last month, Korea Electric Power Corporation (KEPCO) improved the system to allow quarterly adjustment of the fuel cost adjustment unit price within the annual adjustment range and finalized the linkage unit price to be applied to the third quarter electricity rates at 5 won per kWh. Electricity rates consist of a basic charge, power consumption charge (standard fuel cost), climate environment charge, and fuel cost adjustment charge, among which the fuel cost adjustment charge, adjusted quarterly, is being increased.

Originally, the increase range for the fuel cost adjustment unit price was up to ±3 won per kWh compared to the previous quarter and up to ±5 won annually, but with this system reform, it was raised to the maximum annual increase of 5 won. Accordingly, the fuel cost adjustment unit price, which had been frozen in the first and second quarters, will no longer increase after the 5 won increase in the third quarter.

An electricity meter is installed at a commercial building in Seoul on the 27th, when the fuel cost adjustment rate for electricity bills in the third quarter is scheduled to be announced. Photo by Jinhyung Kang aymsdream@

◆ "Electricity usage is highest in July and August"…Low-income households distressed by electricity rate hike ahead of heatwave

Since the electricity rate hike occurred just before July and August, when heatwaves are most frequent, the electricity bill burden on low-income households has increased. Additionally, there is concern about the steeply increasing progressive rates depending on usage brackets.

During the summer period (July 1 to August 31, based on residential low voltage), electricity usage is divided into 0?300 kWh, 301?450 kWh, and over 450 kWh, with different rates applied to each bracket. For monthly electricity consumption up to 300 kWh, 93.2 won per kWh is charged; for 301?450 kWh, 187.8 won; and for over 450 kWh, 280.5 won per kWh. Households consuming over 1,000 kWh are subject to a super user rate of 709.4 won per kWh.

As a result, families with infants who must run air conditioners 24 hours a day, as well as small business owners and self-employed individuals, are increasingly worried. A 37-year-old housewife living in Gyeonggi Province, Ms. A, said, "I keep checking the progressive rate stage on the KEPCO Power Planner app," adding, "Since my child feels hot, I cannot just turn off the air conditioner. Still, seeing the usage amount helps reduce the fear of a huge bill, but the burden remains."

Meanwhile, the government has announced an additional 800 billion won worth of livelihood measures, considering that vulnerable groups are severely affected by high inflation. These include expanding the energy voucher support target and raising the unit price.

Earlier on the 8th, the government held the first Emergency Economic and Livelihood Meeting chaired by President Yoon Seok-yeol and announced the 'Livelihood Stabilization Plan to Alleviate High Inflation Burden.' Specifically, to reduce the burden on grocery shopping, the scale of discount coupons for agricultural, livestock, and fishery products will be increased by 50 billion won. Individuals can receive up to a 20% discount with a limit of 10,000 won per person.

Additionally, 15.3 billion won will be invested to raise the energy voucher unit price from 172,000 won to 185,000 won for 1.6 million low-income people (1.18 million households) who benefit from it. However, since this is scheduled to be applied from October, there are criticisms that it is not an immediate measure for surviving the summer.

KEPCO also increased the welfare limit for electricity bills from July to September to 40% to reduce the burden of rate hikes on vulnerable groups. For families with newborns, the welfare discount limit has been expanded from 16,000 won to 22,000 won per month. Since July 2019, with the expansion of the summer progressive brackets (Stage 1 +100 kWh, Stage 2 +50 kWh), households using 320 kWh per month receive a 9,500 won discount on their bills during July and August.

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