City gas rates rise again after a month.
The Ministry of Trade, Industry and Energy announced that from the 1st of next month, city gas rates for civil use such as residential and general use will be increased.
This is a measure in response to an increase in receivables from Korea Gas Corporation as the cost of raw materials skyrocketed due to an increase in the unit price of imports of liquefied natural gas and LNG last year, but price increases were suppressed to stabilize prices.
The increase is 8.4 to 9.4%, which is an average of 2,450 won per household per month.
City gas rate hike... although it was scheduled
In fact, this increase was already announced last year.
At the end of last year, KOGAS' receivables had already reached 1.8 trillion won, and the government decided to raise the settlement unit price step by step in May, July and October of this year, taking this into account.
Accounts receivable are the portion of LNG that KOGAS has not been able to recover as a fee.
City gas rates are largely composed of 'raw material cost' and 'wholesale and retail supply cost', which are LNG import unit prices.
The raw material cost is calculated by adding the standard raw material cost and the settlement unit price, and the wholesale and retail supply cost is determined by adding the supply cost of the wholesale and retail supplier and the investment fee.
What the Ministry of Industry and Trade has decided to raise this time is the 'settlement unit price', which will increase by 1.23 won per megajoule (MJ, gas used calorie unit) starting next month.
Enlarging an image
Previously, on the 1st, the price of city gas for housing and general use had already risen due to the adjustment of the standard raw material cost.
However, the Ministry of Industry and Trade has decided to lower the wholesale supply cost for residential and general use by 0.1% and 0.3%, respectively, for residential and general use, which is set in May every year in consideration of the settlement price increase.
If the settlement unit price increase and wholesale supply cost reduction are reflected at the same time, from the 1st of next month, the housing rate will increase by 8.4% from 14.6543 won per MJ to 15.8810 won per MJ.
In addition, the 'Business 1' fee applied to restaurants, cafeterias, hairdressing businesses, lodging businesses, swimming pools, etc. is 8.7% from 14.2631 won to 15.5100 won per MJ. Each will increase by 9.4% from 13.2614 won to 14.5083.
Electricity rates likely to rise in the second half of the year
Enlarging an image
The possibility of an electricity rate hike came from the Presidential Transition Committee.
The 2nd Economic Subcommittee of the Transition Committee announced the 'Basic Direction and Five Key Tasks for Normalizing Energy Policy,' and the basic direction is ① Rational harmonization of nuclear power and new and renewable energy ② Conversion from supply expansion to strengthening demand policy ③ Normalization of energy market functions etc. were presented.
In particular, in electricity rates, we decided to establish a cost-based rate principle, which is interpreted as suggesting the possibility of a rate increase.
In the briefing of the second economic division of the transition committee, it was also mentioned that KEPCO recorded a record loss of 5.9 trillion won last year. emphasized that
However, although he said that he did not think that KEPCO's losses would be a factor in price hikes, the market reaction was dominant that an electricity rate hike in the second half of the year would be inevitable.
However, the next government cannot help but feel burdened by raising electricity rates, which are directly related to inflation and people's livelihood.
So, what the transition committee emphasized here is the nuclear power plant.
The transition committee said that as the next government has turned to maintaining and expanding nuclear power plants at an appropriate weight, it is expected that the factors for raising electricity prices will be greatly alleviated.
The plan is to increase the proportion of nuclear power generation in 2030 by resuming the construction of Shin-Hanul Units 3 and 4, continuing operation of nuclear power plants, and adjusting the utilization rate.
Nuclear power plants have a disadvantage in that it is difficult to increase the proportion of power generation in a short period of time.
In other words, even if nuclear power plants are returned to lower electricity rates as planned by the transition committee, it will take a considerable amount of time for this to actually be reflected in electricity rates.
This is the reason why electricity rates are expected to rise in the second half of the year.