Transition to a two-component retail electricity tariff
• The Ministry of Industry and Trade (MoIT) is currently considering a transition of the retail electricity pricing mechanism toward a two-component electricity tariff, with the objectives of enhancing price transparency, encouraging more efficient electricity usage, and ensuring adequate capital recovery to support investment in the transmission network and power system dispatch.• The two-component electricity tariff consists of a capacity charge and an energy charge.
• During the pilot phase, this mechanism is expected to be more favorable for industrial customers with high and stable peak demand, while at the same time providing incentives for users to optimize their electricity consumption patterns.
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