Electricity prices to rise in South Korea from 2023
2022.12.30 00:35
Electricity prices to rise in South Korea from 2023
Budrigannews.com – After a year of rising global energy prices, South Korea’s energy minister announced on Friday that the country would increase electricity prices for the first quarter of 2023 by 13.1 won per kilowatt-hour, the highest increase in four decades.
Minister Lee Chang-yang stated that a review of trends in global energy prices, domestic inflation conditions, and the financial standings of public enterprises will determine the amount of the increase for the second quarter and beyond.
The Korea Electric Power According to Lee, Corp (KEPCO) is anticipated to run a deficit of more than 30 trillion won ($23.73 billion) this year, up from a deficit of 6 trillion won the previous year. “This is due to an increase in global energy prices that had not been reflected in domestic prices in a timely manner,” Lee stated. In order to normalize KEPCO and Korea Gas Corporation’s management and ensure the sustainability of energy supplies, price adjustments for gas and electricity are necessary.
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According to KEPCO, the state-run electricity giant, the increase of 13.1 won in the first quarter is the largest quarterly increase since the beginning of the current pricing system in 2021. The quarterly increase will be the fastest since 1980, with an average rate of 9.5%.
Before considering an increase in the second and subsequent quarters, the government decided to hold gas prices for the first quarter.
