The Korea Chamber of Commerce and Trade (KCCI) requested the ruling Democratic Celebration of Korea management to expedite the introduction of a regional electrical energy charge differential system. The authorized foundation for introducing the differential system has been established with the passage of the Distributed Power Promotion Particular Act by the Nationwide Meeting, however its implementation has been delayed as a result of complicated entangled pursuits of firms, native governments, and customers.
The KCCI held a coverage assembly with the Democratic Celebration of Korea management, together with get together chief Jung Cheong-rae, on the KCCI constructing in central Seoul on Dec. 16. KCCI Chairman Chey Tae-won, who can also be chairman of SK Group, proposed the regional electrical energy charge differential system, and the Democratic Celebration promised to actively evaluation it.
Democratic Celebration spokesperson Kwon Hyang-yeop held a briefing after the assembly and mentioned, “The electrical energy charge situation is a headache for companies working in regional areas,” including, “There was a request to distinguish electrical energy charges for firms that moved to regional areas to resolve energy grid saturation within the metropolitan space.” Spokesperson Kwon mentioned, “At the moment, exterior skilled analysis is underway, and we mentioned we might actively evaluation it by session as soon as it’s accomplished.”
The regional electrical energy charge differential system is a system that costs totally different charges primarily based on the space between electrical energy manufacturing areas and consumption areas. It really works by lowering electrical energy charges in areas near energy crops the place electrical energy could be simply accessed, whereas areas like Seoul and the metropolitan area that eat giant quantities of electrical energy however don’t have any energy crops would pay extra to mirror transmission prices. The regional electrical energy charge differential system was promoted with the aim of addressing regional inequality points arising from electrical energy being primarily produced in regional areas whereas consumption is concentrated within the metropolitan space, the big transmission prices required to ship electrical energy to the metropolitan space, opposition from areas by which transmission networks move, and inducing balanced nationwide growth by putting in manufacturing amenities in areas with low-cost electrical energy.
The Nationwide Meeting enacted the Distributed Power Promotion Particular Act in 2023, which serves as the premise for introducing the regional electrical energy charge differential system, and the legislation has been in impact since June of final 12 months. Nevertheless, detailed laws on particularly which areas to group collectively and the way a lot to distinguish electrical energy charges stay insufficient.
The differential charge system proceeds in two elements. One is the wholesale charge portion the place energy crops produce and promote electrical energy to Korea Electrical Energy Corp., and the opposite is the retail charge portion utilized to firms and customers who truly eat electrical energy. If a area has many energy crops, the probably strategy is to decrease the wholesale worth provided by energy crops and lift retail electrical energy charges for metropolitan housing and factories.
Nevertheless, discussions haven’t progressed quickly as a result of opposition from non-metropolitan non-public energy crops that must decrease wholesale costs and rising complaints from metropolitan firms and residents dealing with elevated electrical energy invoice burdens. An trade insider mentioned, “Whereas transmission prices are excessive within the metropolitan space, distribution prices are literally cheaper within the metropolitan space the place housing and manufacturing amenities are concentrated,” including, “There are various facets to contemplate, so conclusions haven’t been reached repeatedly, which suggests asking the ruling get together to speed up the method.”
On the assembly, together with the regional electrical energy charge differential system, opinions had been additionally introduced requesting help for low-carbon metal particular zones in relation to the Ok-Metal Act that handed the Nationwide Meeting plenary session on the finish of final month. Spokesperson Kwon mentioned, “Metal trade areas like Pohang and Gwangyang are experiencing difficulties as a result of carbon neutrality points,” explaining, “This implies designating these industrial complexes as particular zones to speed up low-carbon industries.”
Moreover, spokesperson Kwon reported that main trade requests included introducing manufacturing tax credit to strengthen the competitiveness of renewable vitality similar to solar energy, and passage of the Renewable Power Self-Adequate Metropolis Particular Act.
In the meantime, at this assembly held on the theme of regional growth, KCCI Chairman Chey mentioned, “Since regional growth is one thing that can not be deserted, the federal government has been pursuing numerous insurance policies, and even when elementary issues should not resolved, steady efforts are being made,” including, “Whereas options might not emerge unexpectedly, I feel constructive measures might be explored if we proceed dialogue and discussions ranging from right this moment.” Consultant Jung additionally responded, “Within the disaster of regional extinction and inhabitants decline, the place firms construct factories and function is a vital matter for balanced nationwide growth,” including, “I hope we will put our heads collectively to create circumstances for balanced growth.”
