President Lee Calls for Adjustment of Household Electricity Rates

President Lee Jae-myung stated on July 13 that the current pricing structure for household electricity, which charges the same rate regardless of the time of day, is not appropriate.

During a national fiscal strategy meeting held at the Blue House, he suggested that the electricity pricing system should be revised to offer lower rates during off-peak hours when there is excess power and higher rates during peak times when demand exceeds supply.

President Lee also noted that restructuring the electricity pricing system could help address the inefficiencies associated with heat pumps, a technology gaining attention for its eco-friendly energy solutions.

However, he acknowledged that discussing changes to electricity rates is challenging at the moment due to inflation concerns. He pointed out that household electricity rates are currently higher than industrial rates and emphasized that if there were no inflationary pressures or income issues for the public, it would be necessary to adjust household electricity rates.

He added, “The burden on low-income households could be a concern, and we might consider providing support in the form of vouchers for them. I believe we should have a policy discussion on this matter.”