Electricity Billing

Minister for Trade, Industry and Energy Paik Un-gyu told reporters Monday that abolishing the progressive power rate billing system is really not an easy task. He said that no one would tolerate it if an overhaul in the current three-tier progressive billing system leads to a hike in power rates for a total of 14 million households. Paik said during an appearance in a KBS in-depth news program on August 12th that he was reviewing terminating the current power billing system.

[Soundbite] Paik Un-gyu (Minister for Trade, Industry and Energy (Aug. 12)) : "The government will keep all possibilities open, including the abolishment of the progressive billing system. We will carefully review and hold discussions with parliament in the second half of this year."

Therefore, the minister's remarks on Monday indicate his conclusion that abolishing the progressive billing system is impossible, rejecting some politicians and civic groups' proposal to do away with it. However, there is still criticism that it is not fair to apply the progressive billing system to only household use, which accounts for 13 percent of total power consumption. The system is also denounced for its failure to ease the burden on low-income earners. The ministry plans to discuss an overhaul of the power billing system at the National Assembly in the second half of this year. Unless a creative solution to the billing system is found, only stopgap measures can give temporary reductions in power rates during hot and cold spells.