5 Million Households Face Punitive Power Charges

Up to 5 million homes are expected to be slapped with punitive electricity rates this month as the mercury climbs to record levels.

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Power monopoly KEPCO on Wednesday said when the average temperature rose two degrees Celsius in August, the result was an increase of about 10 percent in air conditioner use compared to the same month last year.

This means up to 5 million households could be subject to punitive rates this month, compared to 4.27 million last month.

KEPCO applies a progressive fee scale for household electricity use, with the highest rate of 11 times for the greediest consumers.

That means they will pay three to four times more than in July.

There are growing calls to revise the rates to ease the burden on private households who are merely trying to keep cool in the sweltering heat.

But the Ministry of Trade, Industry and Energy is less than enthusiastic. "If we scrap the progressive rates, the overall charges will rise for everyone and cause low-income families to shoulder a higher burden", said Kim Yong-rae at the ministry.

Others, however, say the present system benefits high-income, single households that use less electricity and punishes poorer families with many members.