Seoul: The Ministry of Climate, Energy and Environment announced plans to revamp the industrial electricity pricing structure as part of governmental efforts to alleviate financial pressures on businesses.
According to Yonhap News Agency, the ministry's initiative aims to address regional disparities in electricity demand by revising the pricing system. This change is expected to help reduce the concentration of industries within the Seoul metropolitan area and encourage balanced regional development. The new structure will offer reduced electricity costs for businesses located outside the capital region.
The proposed plan will divide the country into four major regions, each further segmented based on government-designated population decline zones. This strategic division seeks to address the varying electricity demands and promote equitable economic growth across different areas.
Minister Kim Sung-whan emphasized that the revision targets energy-intensive sectors like steel and petrochemicals, which predominantly operate outside the metropolitan area. "The government will lower industrial electricity rates to help them improve corporate cost competitiveness," Kim stated during a press conference on Monday.
Currently, industrial electricity rates hover around 180 won per kilowatt-hour (kWh), subject to time-of-use variations. The ministry intends to conduct a public hearing on the proposed pricing system later this week, aiming to gather feedback before finalizing the plan.