SME Sector and KEPCO Seek Solutions for Electricity Rates and Energy Efficiency

Holding a Working-Level Council for Win-Win Cooperation

The Korea Federation of SMEs announced on April 24 that it had jointly held a working-level council for win-win cooperation with Korea Electric Power Corporation (KEPCO).

The working-level council for win-win cooperation between SMEs was first established in 2019 by KEPCO and the Korea Federation of SMEs to discuss ways to collaborate with the SME sector. At the meeting, KEPCO's support programs for co-prosperity with small and medium-sized ventures were introduced, including export support and energy efficiency improvement projects. Participants showed particular interest in the long-term employment program for core personnel and the project supporting the replacement of high-efficiency equipment for shared facilities in the root industry.

During the subsequent discussion, key issues for the SME sector were addressed, including ▲improvements to the procedures and standards for switchgear PT (transformer) delivery testing, and ▲support for the Gunsan Port offshore wind heavy cargo terminal development project. The 'industrial electricity tariff system' was also a central topic. SMEs argued for the need to improve the system, noting that electricity costs account for a high proportion of manufacturing costs and are difficult to reflect in delivery prices, which results in a significant burden from electricity rate increases. Specific requests for improvement included ▲changing the basic charge maximum demand calculation from an annual to a quarterly or monthly basis, and ▲adjusting seasonal (June and November) and time-of-use rates (such as Saturday mid-load hours) to better reflect actual power demand.

Yang Chanhoe, Head of the Innovation and Growth Division at the Korea Federation of SMEs, emphasized, "KEPCO and the SME sector are a community of shared destiny that must work together to address national challenges such as strengthening industrial competitiveness and improving energy efficiency. We need to seek rational alternatives on issues such as rationalizing the electricity tariff system and transitioning to an efficiency-oriented energy system," adding, "Continuous communication and efforts for mutual growth between the SME sector and KEPCO are essential."

Yoo Donghee, Head of the Energy Ecosystem Creation Department at KEPCO, responded, "Among the issues proposed today, those that can be implemented immediately will be reflected in this year's plans, and for those requiring more in-depth discussion, we will continue communication to narrow differences in positions."

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