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What are progressive electricity rates? Tiers, how bills are calculated, and why they spike (2026)

The tier boundaries, base charges, and a worked calculation example for Korea's residential progressive rates, based on current 2026 rates. Reference date: October 20, 2026. Source: the rate table in Appendix 1 of KEPCO's General Supply Terms.

What are progressive rates?

Progressive rates are a tiered pricing system applied to residential electricity in Korea, with 3 tiers in which the per-kWh rate rises from ₩120.0 → ₩214.6 → ₩307.3 as monthly usage increases.

It is not only the energy charge (the per-kWh rate multiplied by usage) that rises — the base charge also changes by tier, from ₩910 → ₩1,600 → ₩7,300. The system is designed to lower the burden on low-usage households and discourage overconsumption, and it applies only to residential service, not general or industrial service. The figures in this article are for residential low-voltage service, which applies to detached houses and small apartment units in Korea.

At what usage do the tiers change?

In non-summer months (Jan–Jun, Sep–Dec), the boundaries are 200 kWh and 400 kWh. In summer (Jul–Aug), they widen to 300 kWh and 450 kWh.

TierNon-summer usageSummer (Jul–Aug) usageBase chargeEnergy charge
Tier 1Up to 200 kWhUp to 300 kWh₩910₩120.0/kWh
Tier 2201–400 kWh301–450 kWh₩1,600₩214.6/kWh
Tier 3Above 400 kWhAbove 450 kWh₩7,300₩307.3/kWh

Source: KEPCO General Supply Terms, Appendix 1, monthly residential (low-voltage) rate table. Thanks to the wider summer tiers, the same 300 kWh costs ₩57,760 in a non-summer month but ₩46,320 in summer.

What makes up an electricity bill?

Total amount due = base charge + energy charge + climate & environment charge + fuel cost adjustment, plus VAT of 10% and the Electricity Industry Infrastructure Fund at 2.7%.

Rounding rules also determine the billed amount: VAT is rounded to the nearest won, while the Electricity Industry Infrastructure Fund and the final amount due are rounded down to the nearest ₩10. The minimum monthly charge is ₩1,000 (KRW).

How much is 350 kWh? (worked example)

In a non-summer month, the total amount due is ₩70,640. For the same usage in summer (Jul–Aug), the wider tiers bring it down to ₩59,980.

ItemCalculationAmount
Base chargeTier 2₩1,600
Energy charge — Tier 1200 kWh × ₩120.0₩24,000
Energy charge — Tier 2150 kWh × ₩214.6₩32,190
Climate & environment charge350 kWh × ₩9.0₩3,150
Fuel cost adjustment350 kWh × ₩5.0₩1,750
Electricity charges subtotal₩62,690
VAT 10%₩6,269
Electricity Industry Infrastructure Fund 2.7%₩1,690
Total amount dueRounded down to nearest ₩10₩70,640

Full table of bills by usage (non-summer): 100 kWh ₩16,120 · 200 kWh ₩31,220 · 250 kWh ₩44,880 · 300 kWh ₩57,760 · 400 kWh ₩83,530 · 450 kWh ₩108,050 · 500 kWh ₩126,160. Check your own usage in the electricity bill calculator.

Why does my bill rise so much when I use just 1 kWh more?

It is the "threshold effect": the moment you cross a tier boundary, the base charge for the whole month changes. At 400 kWh in a non-summer month the bill is ₩83,530, but at 401 kWh it is ₩90,310 — an increase of ₩6,780.

The difference in the energy charge for the extra 1 kWh is only a few hundred won; most of the increase is the base charge jumping by ₩5,700, from ₩1,600 to ₩7,300. That is why, near the 200 kWh and 400 kWh boundaries (300 kWh and 450 kWh in summer), simply keeping usage below the boundary can save you thousands of won (KRW).

What is the super-user rate?

In summer (Jul–Aug) and winter (Dec–Feb), if monthly usage exceeds 1,000 kWh, a rate of ₩736.2 per kWh is applied to the excess.

At about 2.4 times the Tier 3 rate (₩307.3), it can make bills rise sharply in months with very high usage, such as homes with electric heating or large households. It is defined in the General Supply Terms, and when a meter-reading period spans a seasonal change, it is adjusted by day-count proration.

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Frequently asked questions

Does this rate table apply to apartments too?

For apartments, it depends on the contract type. Households that contract directly with KEPCO under individual metering are billed at residential low-voltage rates, while apartment complexes contracted for high-voltage service as a whole use the residential high-voltage rate table (with lower per-kWh rates), and common-area electricity charges are allocated to each household. Check the contract type on your building management fee statement.

How are welfare discounts reflected?

People with disabilities, national merit recipients, basic livelihood recipients, and multi-child, large, and newborn households receive bill discounts up to a monthly limit. The calculations on this page are the base calculation without discounts, so if you are eligible, your actual bill will be lower. You can apply via KEPCO ON or a local community service center in Korea.

Why does the fuel cost adjustment keep changing?

The fuel cost adjustment rate is set quarterly to reflect changes in generation fuel prices such as bituminous coal and LNG over the previous three months, and is capped within ±₩5 per kWh to prevent abrupt swings. For Q4 2026, the calculated value was +₩7.3, but the cap applied and it was set at +₩5 (announced by KEPCO on September 21, 2026).

Can the calculated result differ from my actual bill?

Yes. Day-count proration when a meter-reading period spans a seasonal change, welfare discounts, and the allocation of apartment common-area charges can cause differences of tens of won or more. The calculations on this page are the standard calculation for a month that falls entirely within one season.

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