State-run power firm Korea Electric Power Corp. will offer a temporary discount on its rates to households and small and medium-sized enterprises, the government said Sunday, partly to reflect a recent plunge in global oil prices and the resulting spike in the company’s earning.
Starting on July 1, households that use more than 300 kilowatt-hours and less than 400 kilowatt-hours of electricity a month will be offered a special discount that will help them save up to 11,520 won ($10.37) per month, according to the Ministry of Trade, Industry and Energy.
The discount will also be offered to households that consume more than 400 kilowatt-hours of electricity per month, though they will be charged the regular rates for any amount exceeding 400 kilowatt-hours.
The special discount, effective until the end of September, is expected to benefit nearly 6.5 million households in the country, the ministry said.
For an average four-member household, it will help save an average 8,368 won per month, it added.
The move comes as the average price of Dubai crude, which accounts for more than 80 percent of the country’s overall oil imports, plunged nearly 45 percent to $57.70 per barrel in April from $104.60 per barrel in the same month last year, apparently improving the profitability of KEPCO.
In the first quarter, KEPCO’s net income spiked 117.9 percent on-year to 1.22 trillion won ($1.1 billion).
Still, the plunge in oil price did not warrant a permanent rate cut, the ministry said, noting only 2.9 percent of all electricity generated in 2013 had come from oil while nearly two-thirds of the total came from nuclear power plants and soft coal.
The special discount on electricity rates will also be offered to small and medium-sized firms, though only on Saturdays.
For 12 months from the start of next month, a 50-percent discount on electricity rates will be offered for 22 hours each Saturday, instead of the current 10 hours.
This will benefit about 81,000 small and medium-sized businesses in the country, helping them save an average 4.37 million won each over the next 12 months, the ministry said. (Yonhap)
