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Electricity rates rise for the first time in 8 years. It is judged that it is difficult to bear the burden of soaring fuel costs any longer, but there are concerns that inflationary pressure will increase.
Reporter Lee Seong-hoon reports.
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From the 1st of next month, the electricity rate for the fourth quarter will increase by 3 won per kWh.
The average monthly consumption of a four-person household in Korea is about 350 kWh.
The 'fuel price index system' was introduced, which reflects the increase in fuel cost in the price, but electricity rates have been frozen this year.
This is because of concerns that the economic difficulties of the working class may grow further by stimulating inflation during the prolonged corona virus.
However, considering that there is a limit to artificially suppressing the increase in fuel costs, KEPCO decided to raise it after eight years.
[Seung-Hoon Yoo / Professor, Department of Energy Policy, Seoul National University of Science and Technology: Fuel prices are continuously rising. Purchases for renewable electricity continue to grow. It seems inevitable to adjust electricity rates in the first quarter of next year as well.] The
increase in electricity rates, which is the cost of raw materials, can lead to increased costs for products and services, leading to an increase in domino prices.
This year, it is expected to increase the overall inflation rate by about 0.01 percentage point.
[Shin Se-don / Professor Emeritus of Economics, Sookmyung Women's University: When electricity prices rise, it
gives the
impression that
the
price of rice has risen
.
Psychologically, it has a huge impact on inflation...
.] In
addition, other public utility rates, which are accumulating factors of increase, may become an opportunity to raise prices one after another, which is expected to put a great burden on the government's price management in the second half of the year.
Small and medium-sized enterprises and small business owners have requested reductions in electricity rates for businesses affected by the coronavirus.
(Video editing: Park Ki-duk)