Choo Kyung-ho "Electricity rates must be raised significantly next year... Timing of increase to be announced soon"

Emphasis on Intent to Raise Electricity Rates... Increase Details to Be Announced Soon

Deputy Prime Minister Choo Kyung-ho speaking at the press corps meeting
(Sejong=Yonhap News) Photo by Kim Juhyung = Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at the press corps meeting held at the Government Complex Sejong in Sejong City on the afternoon of the 27th. 2022.12.27
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[Asia Economy Sejong=Reporter Lee Junhyung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "Next year's electricity and gas rates inevitably have to be raised significantly," adding, "The extent to which electricity rates will be increased will be announced soon."

At a press conference held on the 27th at the Sejong Government Complex, Deputy Prime Minister Choo said, "Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation are accumulating deficits," and made the remarks. He added, "The specific scale and timing of the (electricity and gas rate) increase are in the final stages of consultation with related agencies."

Regarding gas rates, Deputy Prime Minister Choo mentioned that an option to raise rates after the first quarter of next year is also being considered. He said, "Since the burden of gas rates can increase during the winter season, we are reviewing the alternative of raising rates after the first quarter of next year," and added, "As for the timing of the increase, we have not yet made a final decision on whether to announce the annual plan for next year all at once or to announce it quarterly while monitoring the international energy price situation."

He also emphasized the intention to reduce the issuance of KEPCO bonds. Deputy Prime Minister Choo stated, "In any case, if (electricity rates) are raised, the scale of the increase will be significant," and said, "Next year will be a year in which the issuance scale of KEPCO bonds and others will be drastically reduced compared to this year."

He mentioned the energy cost burden on vulnerable groups as well. Deputy Prime Minister Choo said, "Even if (electricity and gas rates) are raised, for vulnerable groups, the electricity rates will not impose additional burdens beyond this year's level," and added, "We plan to adjust the rate system to minimize the burden on vulnerable groups through special discounts on gas rates as well."