"Cheaper by Day, Costlier by Night"... Time-of-Use Electricity Rate System Begins April 16

Aimed at 46% of Industrial Power Consumption
50% Discount on Weekend Daytime Rates
Lower Charging Fees for Electric Vehicles

An electric meter is installed in a commercial building in Seoul. Photo by Jin-Hyung Kang

The "seasonal and time-of-use electricity rate reform plan," which lowers electricity rates during daytime hours and raises them during evening peak hours, will be officially implemented starting April 16.

According to the Ministry of Climate, Energy and Environment and Korea Electric Power Corporation on April 15, from April 16, the "maximum load" rate, which previously applied on weekdays from 11 a.m. to 3 p.m., will be downgraded to "intermediate load." Meanwhile, the "intermediate load" rate, which applied from 6 p.m. to 9 p.m., will be raised to "maximum load." In addition, electricity usage charges will be discounted by 50% during daytime hours on weekends and public holidays in the spring and fall, when electricity demand is relatively low.

The ministry expects this measure to maximize the use of solar power generation during the day and reduce reliance on liquefied natural gas (LNG) power generation in the evening. The plan also aims to serve as a demand management tool to ease the burden of thermal power generation, especially amid increased LNG price volatility due to recent instability in the Middle East.

This reform will first be applied to industrial (Type B) customers, who account for approximately 46% of total electricity consumption, and to electric vehicle charging, which allows for relatively easy demand adjustment. Industrial (Type B) customers are large-scale electricity users who are charged based on time-of-use tariffs, including energy-intensive sectors such as steel and chemicals.

However, in consideration of the industry's burden, a grace period has been granted to some companies. As a result of the grace period application process, which was conducted from March 23 to April 10, 514 business sites—about 1.3% of all industrial (Type B) customers—applied for the deferral. These companies will have a preparation period until September 30, after which the revised rates will take effect from October 1.

A weekend discount system will also be introduced for electric vehicle charging fees. Starting from April 18, the first weekend after the reform's implementation, a 50% discount will be applied to charging fees from 11 a.m. to 2 p.m. on spring and fall weekends (March to May, September to October). This will be immediately implemented at approximately 94,000 self-operated charging stations and about 13,000 public rapid charging stations, with some private operators also expected to participate.

The government plans to expand the reform to other rate categories in the future. Industrial (Type A) II, General (Type A) II and Type B, and Educational (Type B) rates will be implemented from June 1 after an additional preparation period. The plan also calls for a gradual expansion of the time-of-use rate system for residential customers.

A ministry official stated, "It is necessary to rationally adjust the structure of electricity demand in line with the expansion of renewable energy," and added, "Through the reform of the rate system, we will achieve both stability in power supply and improved energy efficiency."

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