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Government Legislation

  • [Taxation] Standards for the Calculation of Local District Heating and Cooling Rates and Setting of Upper Limits
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation :
    • Opinion Submission Deadline :

1. Reason for Amendment
a. The existing heating rate calculation method is based on the principle of public utility rate determination, where rates are set to cover the total costs. The amendment aims to provide benefits to district heating consumers within the framework of the existing rate calculation principles.
b. The purpose of this amendment is to consider the accumulated losses of operators, the current status of the industry, and to establish a reasonable rate system to promote cost-saving efforts and build a stable heat supply system.
c. Correction of simple typographical errors in the existing notification and clarification of meanings for proper revision of the notification.

2. Key Points

a. Due to the existing rate ceiling regulations, a legal basis has been provided to recover uncollected costs and reflect them in rates (Article 2, Paragraph 5; Article 9, Paragraph 3, Item 8).
b. If a separate rate ceiling is not set for each operator, the rates of Korea District Heating Corporation are applied. By changing the rate ratio, a method for returning benefits to consumers has been provided (Article 9, Paragraph 4).
c. Amendments to ensure consistency with previous provisions, including adjustments to wording in Article 2, Paragraph 5 and specifying the application ratio for data submission based on changes in the reference rate ratio in Article 9, Paragraph 4.
d. The scope of the energy efficiency improvement and heat pipeline safety management investment promotion support system has been expanded to include all operators to incentivize efforts to reduce heat costs and ensure stable heat supply (Article 13, Paragraph 2; Appendix 3).
e. Other notification revisions (Articles 1, 9, 17).

Regulatory effect assessment
  • 지역냉난방 열요금 산정기준 및 상한 지정(규제영향분석서)_20250404.hwp [download]
Legislative proposal (draft)
  • 행정예고문(지역냉난방 열요금 산정기준 및 상한 지정 일부개정고시안_20250331).hwpx [download]