From 2026, regional electricity rates will be differentiated... the Seoul metropolitan area will become more expensive

Starting in 2026, electricity rates in the Busan, Ulsan, and Chungnam regions, where power plants are concentrated, will decrease, while electricity rates in the Seoul metropolitan area will become relatively more expensive.

On the 22nd, Minister of Trade, Industry and Energy An Deok-geun held the 31st Energy Committee and decided to implement a differentiated regional electricity rate system starting in 2026. The regional differentiated rate system lowers electricity rates in areas with concentrated power plants, while increasing rates as the distance from the power plants grows. Legal grounds were established last May when the Special Law on Distributed Rates was passed by the National Assembly. This marks the end of the single pricing system that has persisted for over 20 years since Korea Electric Power Corporation (KEPCO) split off generation subsidiaries and restructured the power industry in 2001.

The special law for the distributed rate plan will be implemented from the 14th of next month, but specific implementation plans have not been established. The Ministry of Industry plans to prepare detailed measures such as enforcement ordinances during the remaining period and apply a differentiated regional rate system starting from 2026.