Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

The electricity consumed in apartments is classified as residential. However, due to unique characteristics such as the method of electricity supply and the usage of shared facilities, apartments have a separate electricity billing contract distinct from single-unit houses. This paper examines the background and operation of the electricity billing contract applied to the apartments, which are the most common residential housing in South Korea. We discuss current issues and policy implications. Specifically, we evaluate the appropriateness of the price difference between low-voltage and high-voltage residential tariffs, criteria of the electricity usage for shared facilities, issues on the installation and management of Advanced Metering Infrastructure (AMI), and challenges in introducing the residential time-of-use (TOU) tariff. We confirm the impact of the 2016 reform of residential tiered pricing on apartment electricity billing contracts and propose the need for reevaluation according to current conditions. We also suggest some policy implications for reforming apartment electricity billing contracts concurrently with residential electricity tariff reforms.