The government and KEPCO raised electricity rates for the fourth quarter, effective from October 1st.
This is the first increase in electricity rates since November 2013.
The government and KEPCO announced today (23rd) that they set the final fuel cost adjustment unit price for the fourth quarter (October to December) at 0.0 won per kWh.
It was up 3.0 won from the previous quarter (-3 won) and returned to the same level as last year.
Accordingly, for a four-person household that uses an average of 350 kWh per month, the electricity bill will rise by up to KRW 1,050 per month in the fourth quarter.
Starting this year, the government lowered 3.0 won per kWh in the first quarter after introducing a fuel cost indexing system that reflects the fuel cost for electricity production in three-month increments.
In the second and third quarters, rates were frozen at the same level as in the first quarter in consideration of inflation and the national economy.
The government's sudden increase in electricity rates in the fourth quarter is due to the surge in fuel prices for electricity production, such as liquefied natural gas (LNG), bituminous coal, and oil.
Although fuel cost has been on the rise since this year, it was not reflected in the electricity cost, and it was judged that there is no longer a limit.
According to KEPCO, the price of bituminous coal in the preceding three months (June to August) averaged 151.13 won per kg after tax, LNG price 601.54 won, and BC oil 574.40 won, up significantly from the third quarter.
When this increase in fuel cost is reflected, the adjusted unit price for the fourth quarter is 10.8 won per kWh, which should be 13.8 won higher than the previous quarter (-3 won), but the adjustment range was only 3.0 won.
This is because there is an upper limit device so that the quarterly rate can be changed only by 3 won compared to the previous rate within the maximum range of 5 won per kWh.
However, as the electricity rate, which is a typical public utility rate, rises, there is a possibility that the overall price level, including city gas and other public charges, will fluctuate.
The government's inflation control is expected to take an emergency as concerns about inflation are growing, such as the consumer price inflation rate of 2% for five consecutive months.
The National Assembly Legislative Investigation Agency pointed out in the report of 'Analysis of Issues on National Audit in 2021' that "consumer prices may rise further due to the fuel cost indexing system."
Meanwhile, KEPCO originally planned to announce the 4th quarter electricity rate through the KEPCO website at 8 o'clock, but the announcement was delayed by 27 minutes because the connection was not smooth due to a large number of users.