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Busan Metropolitan City to Waive Replacement Costs for Special City Gas Meters, First Among Metropolitan and Special Cities

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Busan Metropolitan City announced that, starting tomorrow (May 1), it will no longer separately charge replacement costs for special city gas meters, becoming the first among metropolitan and special cities to implement this measure.

Accordingly, residential city gas users with special meters will only be required to pay the base fee (KRW 990 per month, including VAT), and the financial burden on citizens is expected to decrease by approximately KRW 1.0–1.2 billion annually.

Special city gas meters are devices equipped with remote meter reading, gas leak detection, and automatic shut-off functions. Installation of these meters has been mandatory for newly approved multi-family housing since July 25, 2013.

Under the Measurement Act, city gas meters must be replaced every five years, and until now, replacement costs have been charged in monthly installments over a five-year period.

For general meters installed in detached houses and similar properties, replacement costs are included in the base fee. However, because special meters are more expensive, the difference in purchase cost compared to general meters (KRW 398 per month for a grade-4 meter) has been charged separately, leading to continuous public complaints.

Taking into account the unique characteristics of the supply environment and the need to ease the burden on citizens, the city improved the system in consultation with Busan City Gas Co., Ltd. so that savings from reduced operating costs of special meters are directly passed on to users.

Busan has relatively lower city gas consumption compared to other regions due to its higher average annual temperature, while its geographical characteristics require higher pipeline investment costs, both of which contribute to increased supply costs.

In addition, considering the anticipated rise in wholesale city gas prices due to recent developments in the Middle East, the city determined that measures to alleviate the financial burden on citizens are necessary.

Park Dong-seok, Director General of the Advanced Industry Bureau, stated, “We expect that this institutional improvement will help reduce the economic burden on city gas users,” adding, “After implementation, we will continue to monitor its impact on citizens and pursue further improvements to ensure a stable city gas supply.”