The country's power prices have not jumped at such a quick pace since the oil crisis before Kepco began calculating quarterly data. Read more at straitstimes.com.
SEOUL – South Korea plans a steep increase to electricity rates next year as the nation’s state-run utility faces a record loss from sky-high fuel costs.
“Adjusting electricity and gas rates is inevitable in order to resolve fundamental challenges such as normalizing management at Korea Electric and Korea Gas, and securing sustainability of energy supply,” Mr Lee Chang-yang, minister of trade, industry and energy, said in a briefing Friday. Despite surging global energy prices, South Korea’s monopoly power distributor refrained from significantly increasing electricity rates in 2022 to help ease the inflation hit to consumers. That has contributed to record losses, which are expected to exceed 30 trillion won this year, Lee said.
Further rate increases will be considered for the second quarter after reviewing the local economy, financial status of state-run companies, as well as global energy prices, Mr Lee said. The government will also look into a gas price hike after keeping rates frozen in the first three months during peak winter heating demand.
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