LG Electronics, Korea Electric Power sign cashback deal to cut peak-hour energy demand

LG Electronics is launching a pilot program that refunds a portion of electricity costs to customers who use its home appliances during off-peak hours.

LG Electronics signed an MOU with Korea Electric Power Corporation on Wednesday at the KEPCO Art Center in Yangjae, Seocho-gu, Seoul, to carry out the Smart Home Appliance Cashback Pilot.

The signing ceremony was attended by Noh Beom-jun, LG Electronics' HS AI Home Solution Business Development head; Lee Jeong-ho, Korea Electric Power Corporation's Customer Service Innovation Division head; and Jeon Seung-su, Samsung Electronics' B.IoT Development Group head.

Participating customers can receive electricity bill refunds of 100 won per kWh — up to 300 won per hour — based on appliance power consumption during the midday window of 11 a.m. to 2 p.m. on weekends and public holidays in spring (March through May) and fall (September through October), when electricity demand is relatively low.

Refunds are automatically deducted from electricity bills through Korea Electric Power Corporation's energy cashback service. Eligible appliances include four product categories: washing machines, dryers, dishwashers and stylers. The WashTower and WashCombo — combination washer-dryer units — are also included.

To enroll, customers must apply for the smart home appliance cashback service on the Korea Electric Power Corporation website, then connect the service through the cashback page on the LG ThinQ AI home platform app.

The pilot was designed to stabilize electricity supply and demand by encouraging appliance use during hours when renewable energy sources such as solar power generate a higher share of electricity.

Jeong Gi-hyeon, executive vice president and head of LG Electronics' HS Platform Business Center, said the company would "spread a culture of smart energy use with customers based on the LG ThinQ AI home platform and introduce a variety of services that contribute to sustainable energy consumption."