The Korea Herald

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Gov't will soon announce plan to address criticism over electricity billing system: Park

By 임정요

Published : Aug. 11, 2016 - 16:19

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President Park Geun-hye on Thursday said her government will announce a plan in the near future to address mounting calls to overhaul South Korea's controversial electricity billing scheme that many say exceedingly overcharges users.

"The government has been exploring ways to help people struggling due to unusually high temperatures this year," the chief executive said during a luncheon with the newly elected Saenuri Party leadership, referring to public concerns about high utility bills caused by using air conditioners.


"Through consultations with the party, the government will announce measures," she stressed.

Park, however, cited a set of reasons for maintaining the current electricity billing system such as the country's heavy reliance on energy imports.

As part of efforts to curtail electricity consumption, South Korea uses a "progressive" billing system for households. The system is not applied to industries that account for over half of the country's energy consumption.

Under the system first introduced during the oil crisis in the 1970s, a household pays 60.7 won ($0.06) per kilowatt for the first 100 kilowatts in a month. But the price rises to 125.9 won if it consumes between 100 and 200 kilowatts.

The price even shoots up to 709.5 won per kilowatt -- nearly 12 times more than the first price -- if they consume electricity in excess of 500 kilowatts each month.

Infuriated over what they call "electricity bill bombs," thousands of people have decided to sue the Korea Electric Power Corporation to demand their payments be returned.

New Saenuri leader Rep. Lee Jung-hyun called the electricity bill problem one of the "most urgent" livelihood issues. 

"I hope that there are immediate measures to tackle the electricity bill issue through holding consultations at the party level or setting up a task force on the issue, or exchanging views among the party, the government and the presidential office," Lee said.

During the luncheon, Park also renewed her calls for unity in the ruling party, long mired in factional strife, and closer coordination among the party, the government and her office to enhance people's livelihoods and revitalize the economy.

Park, in addition, stressed the importance of promptly passing an extra budget plan and a set of bills on labor reform and "regulation-free" zones that her government has pursued to create jobs and nurture new industries as part of a broader campaign to spur growth.

"What people expect of the new party leadership for now is that there would not be any antagonism within the party ranks, and that the leadership will commit itself wholly to enhancing their livelihoods," she said.

"To live up to their expectations, our party should first stand united, and the party, government and presidential office should also be united as one."

The new leadership was elected at the party's national convention on Tuesday. It is comprised mostly of those loyal to Park, which has fueled speculation that the president will be able to tighten her grip over the party, and that the relationship between Saenuri and the presidential office should improve going forward.

In particular, new party chief Lee, who served as Park's senior secretary for political affairs and public relations between 2013 and 2014, is one of the president's most trusted confidants. (Yonhap)