Struggling with 'Heating Bill Bomb'... Gas Cashback to Expand Starting Next Year

Only 230,000 Out of 16.3 Million Households Applied
Applications Closed Last Month
Refunds Around 5,000 Won Despite Reduced Usage in Cold Wave
Minimum Criteria Lowered and Support Amount Increased Next Year

[Asia Economy Sejong=Reporters Joo Sang-don, Lee Dong-woo] "Until now, gas bills in winter never exceeded 100,000 won, but last December, it nearly reached 300,000 won, and every time I see the bill, I sigh. I expected government measures, but there is no immediate support available, and the support amount is ridiculously small, so I am disappointed."

This is the statement of Mr. Park, a man in his 30s living in Eunpyeong-gu, Seoul, on the 16th. Mr. Park could not hide his frustration regarding the 'Gas Cashback' included in the government's announced livelihood measures.

The day before, the government held the 13th Emergency Economic Livelihood Meeting chaired by President Yoon Seok-yeol and announced measures to alleviate the burden of gas and electricity bills. One of these is the 'Energy Cashback,' which refunds fees if gas usage is reduced. The government plans to provide a 'household cashback' starting this year, refunding fees if winter gas usage is reduced by more than 7% compared to the same period last year, and has decided to relax this requirement to broaden the refund target.

However, the relaxation of the requirements will apply from the next winter season (December this year to March next year). This means there are no support measures for households facing heating cost shocks this winter.

To receive gas cashback this winter, households had to participate in the 'City Gas Saving Cashback' program in advance, with the application deadline last month. Only 230,000 households applied. According to the Ministry of Trade, Industry and Energy, about 20 million households use city gas. Excluding district heating households that use city gas only for cooking, 16.3 million households use gas for heating. Even if all 230,000 applicant households receive cashback benefits, only 1.4% of households using city gas for heating will get a refund. The government states that the application period for this winter's gas cashback has ended, and the related budget for this year is set, making additional applications difficult.

Even if participating households reduce actual usage, the amount of refund they can receive does not meet expectations. If gas bills from December last year to March this year are reduced by more than 7% compared to the same period last year, they receive 30 won per 1㎥, 50 won for more than 10% reduction, and 70 won for more than 15% reduction. The government expects an average refund of about 5,000 won per household. Reducing four months of gas usage means receiving about 1,250 won per month.

The government plans to lower the minimum reduction standard from the existing 7% to about 3% and increase the support unit price. This standard will be finalized around September this year. However, since the Energy Cashback project emphasizes 'spreading an energy-saving culture,' the cashback amount per household will not be significantly increased. The government expects up to 800,000 households to apply for gas cashback next winter. If applicant households actually reduce gas usage, it is estimated they will receive about 10,000 won, twice the current amount.

A government official said, "Earlier, the winter energy voucher support amount for vulnerable groups was doubled, and additionally, all basic livelihood security recipients and near-poor groups will receive increased support up to the maximum heating cost support amount of 592,000 won under existing measures. Since the gas cashback is a project aimed at inducing usage reduction, expanding the support scale too much could undermine its original purpose, so we are cautious."

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