In the first quarter of next year, electricity rates will rise substantially within the range that does not have a major impact on households and businesses.



At a press conference held in Sejong City today, Minister of Trade, Industry and Energy Lee Chang-yang said, "The current rate is being adjusted at the last minute, and a final plan will be announced within the year."



The extent of the electricity rate increase that will be applied in the first quarter of next year is expected to be announced on the 30th.



In order to increase the electricity rate, there remains a process to go through the deliberation of the KEPCO board of directors and the Electricity Committee under the Ministry of Industry, followed by approval by the Minister of Industry.



As the government has emphasized the necessity of raising electricity rates several times, attention is focused on the extent of the increase and the level at each stage.



According to the KEPCO management normalization plan recently submitted by the Ministry of Industry to the National Assembly, the appropriate amount of electricity rate increase for next year was calculated as 51.6 won per kWh (kilowatt hour).



Considering that the electricity rate increase this year is 19.3 won per kWh, it is 2.7 times higher.



If next year's electricity rate hike factors are distributed and reflected in a quarterly 'before high, after low' method, KEPCO's operating profit, which has accumulated losses, will record a surplus of 1.9 trillion won, but it will be reflected evenly distributed quarterly. In this case, the government predicts that the annual deficit will reach 1.3 trillion won.



In addition, it was estimated that KEPCO's operating loss next year would record 14.3 trillion won if the appropriate amount of next year's electricity rate increase was evenly distributed quarterly over three years.



Minister Lee said, “It is good to raise the front (high and low) in order to resolve KEPCO’s deficit, but there is a variable called the winter season.” he explained.



In addition, Minister Lee said, "Due to the energy crisis triggered by the Russia-Ukraine war, global energy policies have all become similar in the direction of expanding nuclear power and renewable energy together." "he said.



Through the 10th Basic Plan for Electricity Supply and Demand, the government set a target of 21.6% for new and renewable energy generation by 2030.



"Considering Korea's mountainous topography, the new and renewable energy generation target of 21.6 percent is quite challenging," said Minister Lee. .



"Currently, the ratio of solar and wind power in renewable energy is about 9:1," he said.



At the same time, he said, “Wind power has a great potential for mutual growth with related industries and a great job creation effect.



Minister Lee, who was appointed last May, said, "It's been 7 months, but this year has passed by like 7 years." It will become a 'field industry ministry'," he emphasized.



(Photo = Yonhap News)