[Column] Heating Costs 'Chaos' Amid Predictions of Further Increases This Year...

[Asia Economy Reporter Oh Hyung-gil] Amid record-breaking cold waves colder than the Arctic, a 'heating bill bomb' has struck the Korean Peninsula. Last year, gas prices rose by about 40% compared to the previous year, and with the sudden cold wave increasing heating usage, heating bills surged 3 to 4 times. Although gas prices were frozen in the first quarter of this year, further increases have been announced, and combined with electricity rate hikes, household burdens are growing.

[Image source=Yonhap News]

There is a heated debate over who is to blame for the heating bills. However, the fact is that global gas prices surged sharply due to reduced natural gas supply following the Russia-Ukraine war. International LNG (liquefied natural gas) prices rose 40%, from $892 per ton in December 2021 to $1,255 per ton last December.

This is an unforeseen situation for any government, and in the US, UK, and Japan, residential gas prices have also increased by 2 to 4 times. Rather than assigning blame, it is time to focus on measures and support plans using that energy.

Immediate measures are urgently needed to address the rise in heating and electricity bills. The government announced plans to expand energy voucher support and provide heating bill discounts for socially vulnerable groups in response to this heating bill increase. However, due to insufficient promotion, unused energy voucher funds have reached 53 billion won over the past five years, showing that they have been neglected. Active care is needed for those in energy blind spots.

Additionally, to reduce household burdens caused by heating bills, the scope of support can be further expanded, or the timing and pace of rate increases can be adjusted considering winter and summer seasons. Although energy public enterprises face serious debt, social responsibility must also be considered.

As an energy-importing country, the government, companies, and households must all unite to eradicate energy overconsumption. Instead of blaming others, the political sphere must now come together to devise countermeasures.

A certain minister who led an underwear-wearing campaign to save energy over a decade ago suddenly came to mind. I wonder what the current president, public officials, and politicians are wearing now.