Electricity Bill for 4-Person Household Rises by '4,022 KRW per Month'... Largest Increase Ever

From 46,380 won to 50,404 won in Q1 next year... Including VAT, the price will rise further

[Asia Economy Sejong=Reporter Dongwoo Lee] The government will raise electricity rates by 13.1 KRW per kWh in the first quarter of next year. For a household of four, the average monthly bill will increase by 4,022 KRW. During the same period, gas rates will be frozen considering the heating cost burden in winter, and the possibility of a rate increase will be reviewed after the second quarter.

On the 30th, Lee Chang-yang, Minister of Trade, Industry and Energy, announced at the Government Seoul Office that electricity rates will be raised by 13.1 KRW per kWh in the first quarter of next year. The electricity consumption charge will increase by 11.4 KRW per kWh, and the climate environment charge by 1.7 KRW. Based on the average monthly usage of a four-person household (307 kWh), the bill will rise from 46,380 KRW this year to 50,404 KRW in the first quarter of next year. This amount excludes VAT and the electricity industry infrastructure fund, so the actual billed amount is expected to increase slightly more.

Minister Lee said, "Adjusting electricity and gas rates is inevitable to normalize the management of Korea Electric Power Corporation and Korea Gas Corporation, and to secure the sustainability of energy supply, addressing fundamental issues."

However, considering the burden felt by vulnerable groups and some consumers, basic livelihood security recipients, lower-income groups, persons with disabilities, independent and distinguished veterans, families with three or more children, large families, and childbirth households will have part of their electricity consumption and climate environment charges frozen for one year next year. Specifically, rates will be frozen up to the average monthly usage of all welfare discount households (313 kWh), and increased rates will apply only to usage exceeding that amount.

For energy-vulnerable groups such as basic livelihood security recipients, the energy voucher will be increased from 127,000 KRW this year to 195,000 KRW next year, and the briquette coupon unit price will be raised from 472,000 KRW to 546,000 KRW during the same period.

For agricultural electricity, considering that applying the full rate increase would cause a sudden burden, the increase in electricity consumption charge (11.4 KRW per kWh) will be divided over three years. In this case, the rate will increase by 3.8 KRW per kWh annually from next year through 2025. The government will increase the budget for energy efficiency improvement projects by 15.5 billion KRW for energy-intensive root companies and 12.1 billion KRW for agricultural customers such as fish farms.

Regarding gas rates, considering the winter heating cost burden and the electricity rate increase, the government plans to freeze rates in the first quarter of next year and review the possibility of a rate increase after the second quarter.

Minister Lee said, "To wisely overcome the energy crisis, we will actively utilize low-cost power sources such as nuclear power and fundamentally transform our economy into an energy low-consumption, high-efficiency structure by working together with all economic actors."

An electricity meter is installed in a residential area in Dobong-gu, Seoul, on the 30th, ahead of Korea Electric Power Corporation's announcement of the fuel cost adjustment unit price for electricity rates in the fourth quarter. Photo by Jinhyung Kang aymsdream@