The government plans to relax the criteria for its household energy cashback program and increase the support amount starting in the second half of 2026. This initiative is a response to the ongoing resource security crisis and energy supply instability caused by the prolonged conflict in the Middle East.
On June 11, the Ministry of Climate, Energy, and Environment announced the expansion of the 'household energy cashback' system to address these challenges. The program encourages public participation in energy conservation efforts.
Under the current system, households that reduce their electricity usage by more than 3% compared to the average consumption over the same period in the previous two years receive a cashback of 30 to 100 won per kilowatt-hour, which is deducted from their electricity bill.
From July to December this year, the key changes include lowering the reduction threshold from 3% to 1% and increasing the cashback amount. The government plans to provide additional support of 20 to 30 won per kilowatt-hour based on the reduction rate, allowing for a maximum cashback of 120 won per kilowatt-hour.
In response to recent energy supply uncertainties, the government has intensified demand management efforts. In April, it raised the alert level for oil resource security from 'caution' to 'warning' and upgraded the natural gas alert from 'interest' to 'caution.'
Park Deok-yeol, Director of Hydrogen and Thermal Industry Policy at the Ministry of Climate, stated, "Energy conservation is the most economical and effective means of securing energy. We expect that this expanded support will encourage more citizens to participate in energy-saving efforts and reduce their electricity costs."
On June 11, the Ministry of Climate, Energy, and Environment announced the expansion of the 'household energy cashback' system to address these challenges. The program encourages public participation in energy conservation efforts.
Under the current system, households that reduce their electricity usage by more than 3% compared to the average consumption over the same period in the previous two years receive a cashback of 30 to 100 won per kilowatt-hour, which is deducted from their electricity bill.
From July to December this year, the key changes include lowering the reduction threshold from 3% to 1% and increasing the cashback amount. The government plans to provide additional support of 20 to 30 won per kilowatt-hour based on the reduction rate, allowing for a maximum cashback of 120 won per kilowatt-hour.
In response to recent energy supply uncertainties, the government has intensified demand management efforts. In April, it raised the alert level for oil resource security from 'caution' to 'warning' and upgraded the natural gas alert from 'interest' to 'caution.'
Park Deok-yeol, Director of Hydrogen and Thermal Industry Policy at the Ministry of Climate, stated, "Energy conservation is the most economical and effective means of securing energy. We expect that this expanded support will encourage more citizens to participate in energy-saving efforts and reduce their electricity costs."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.