<Anchor> The
government and KEPCO announced today (23rd) whether to raise electricity rates for the fourth quarter. Although rates were frozen for the second and third quarters in a row, there is a forecast that the electricity rates will rise for the first time in eight years due to fuel cost hikes and KEPCO's debt burden.
Correspondent Han Sang-woo.
<Reporter>
KEPCO plans to announce the 4th quarter electricity rates, which will be applied from the 1st of next month, on its website this morning.
In accordance with the fuel cost index system introduced in December last year, the fuel cost changes in the immediately preceding three months are reflected in the electricity rate for the next quarter and disclosed.
KEPCO kept the electricity rate cut by 3 won per kilowatt-hour for the second and third consecutive quarters.
At the time, the Ministry of Industry announced that there was a factor in the increase due to the fuel cost increase, but it was frozen to ease the burden on the public due to the prolonged Corona 19 and to stabilize prices.
However, considering the recent sharp rise in fuel costs for electricity production and KEPCO's accumulated debt of over 130 trillion won until last year, there is a forecast that electricity rates will rise in the fourth quarter.
In fact, coal for electricity has risen by 75% in three months since May, and Dubai crude has also risen significantly from the $60 range to the $70 range at the beginning of this year.
If electricity rates rise this time, it will be the first increase in eight years since November 2013.
However, it is expected that the increase will not be large even if the inflation burden is taken into account, such as the recent increase in consumer price inflation of 2%.
The maximum increase from the previous quarter is limited to 3 won per kilowatt hour.