Government Responds to Heating Cost Shock: "Double Increase in Energy Voucher Support and Gas Bill Discounts"

[Asia Economy Sejong=Reporter Dongwoo Lee] The government will double the winter energy support amount to protect vulnerable groups amid the recent surge in heating costs.

The Ministry of Trade, Industry and Energy announced on the 26th that the winter energy voucher support amount will be doubled from the current 152,000 won to 304,000 won. In addition, the gas bill discount for socially disadvantaged groups will also be expanded from the current 9,000 won to 36,000 won to 18,000 won to 72,000 won.

The Ministry explained that this decision was made to protect vulnerable groups struggling with heating costs during the winter. The Ministry stated, "Until recently, the energy voucher support amount was increased by 51%, and the city gas discount for socially disadvantaged groups was raised by 50%, but due to the continued cold wave and increased heating demand, we have decided to expand heating cost support for vulnerable groups."

Earlier this winter, households receiving 'heating cost bomb' bills complained of management fees rising by an average of 2 to 3 times. As the average price of liquefied natural gas (LNG) last year rose 128% from $15.04 per MMBtu (unit of heat) in 2021 to $34.24, the government raised residential gas rates by 5.47 won (38.4%) per megajoule (MJ).

In November last year, the weather was milder than usual, so the increase was not felt, but last month, a record cold wave increased heating usage, triggering the full impact of the management fee surge.

However, despite the government's strengthened support for vulnerable groups, the burden on ordinary consumers and low-income households is expected to remain. The government has hinted at further gas rate increases in the second quarter of this year, which is expected to worsen difficulties. This is because Korea Gas Corporation's unpaid bills have increased by 488% from 1.8 trillion won last year to 8.8 trillion won, making a rate hike inevitable.

A Ministry of Trade, Industry and Energy official said, "We will strengthen support measures such as expanding energy vouchers to ensure that vulnerable groups do not face inconvenience during the winter."

On the 30th, an electric meter at a multi-family house in Seoul city, where the government is scheduled to announce the electricity and gas rate adjustment plan to be applied in the first quarter of next year. The Ministry of Trade, Industry and Energy will announce the electricity and gas rate adjustment plan for the first quarter of next year on this day. Photo by Kim Hyun-min kimhyun81@