The cost of electricity for residential use surged last month amid growing public calls for a change to the power bill system, data showed Tuesday.

According to Korea Electric Power Corp. and Rep. Yoo Dong-soo of The opposition Minjoo Party of Korea, the total power rate for residential use for last month reached 947 billion won ($845 million). If the power rate of small shops --120 billion won -- is included, the electricity bill exceeds 1 trillion won, hitting a record high. 


Last month’s power bill for residential use increased by 65.5 percent compared to July.

Over 16 million households were found to have had an increased power rate, with about 4.9 million households being affected by the cumulative bill system. These households, which accounted for 26.6 percent of the total, shouldered 61 percent of the total residential power for last month.

As the unprecedented scorching heat hit the peninsula during the summer, public criticism escalated over the old power rate system, claiming that it failed to reflect the growing electricity consumption and changing lifestyle.

Under the cumulative power charge system in which the unit price for electricity increases along with the amount of electricity used, power rates are split into six brackets, with the top rate 11.7 times higher than the lowest rate. Industries are exempted from the cumulative power scheme.

The system was introduced in the 1970s with an aim to ease the financial burden for the underprivileged.

The government is currently running a taskforce team to revamp the power rate system this year.

If the cumulative bill system sustains, Kepco is expected to hit record high operating profits this year, the data added. From January to July this year, the company drew nearly 32 trillion won of profits from households and industry, up by 1.4 percent on-year.

Meanwhile, another group of electricity consumers filed a class action suit against Kepco on Monday to take back the “unfair profits” that the company made through the cumulative bill system.

Law firm Inkang said that 1,105 households in Daegu sought the lawsuit, with each household demanding a 500,000 won refund. The size of the lawsuit amounts to 553 million won.

This brings the total number of lawsuits against Kepco since 2014 to nine, which includes about 7,200 households.

The number of lawsuits against Kepco is projected to increase as more households are planning to take legal action, the law firm said.

Nearly 20,000 additional households are seeking to launch a lawsuit soon.

The lower court’s ruling for the first case filed in 2014 will be handed down on Thursday.

By Lee Hyun-jeong  (rene@heraldcorp.com)