The Democratic Party and Government Discuss Electricity and Gas Prices... "Energy Price Realignment Inevitable"

Government "Will Proactively Consider Support Measures for Energy-Vulnerable Groups"

The People Power Party stated at the party-government meeting on electricity and gas rates held on the 29th that "the rationalization of energy rates is inevitable" and added, "We will do our best to find a Solomon-like solution that minimizes the burden on the public and ensures stable energy supply without disruption."

[Image source=Yonhap News]

At the same meeting, Park Dae-chul, chairman of the Policy Committee, criticized, "Throughout the Moon Jae-in administration, it was declared that there would be no increase in electricity rates due to the nuclear phase-out, but ultimately, the Yoon Suk-yeol administration has had to face the Korea Electric Power Corporation (KEPCO) deficits left by the Moon administration's nuclear phase-out policy, unpaid bills of the Korea Gas Corporation, and electricity and gas rate invoices all at once."

He continued, "If energy rates are not properly adjusted, KEPCO's operating deficit in 2023 is projected to reach up to 15 trillion won, and the Korea Gas Corporation's unpaid bills could accumulate up to 13 trillion won," adding, "The accumulation of deficits in these energy public enterprises ultimately becomes a burden passed on to future generations."

He further urged, "When energy rates must be inevitably adjusted, considering the public's burden should be a priority," and called for "all possible measures to minimize the burden on citizens experiencing high inflation and to provide substantial support to vulnerable groups."

Ryu Seong-geol, the ruling party's ranking member of the National Assembly's Planning and Finance Committee, also said, "National finances are not blind money. Especially, shocks caused by external supply factors must be borne by someone," and added, "It is time for the government and public enterprises to review an appropriate burden-sharing ratio among demanders and consumers."

Lee Chang-yang, Minister of Trade, Industry and Energy, stated, "Rate normalization should be promoted by comprehensively considering the public's burden and the financial situation of energy public enterprises," and said, "In particular, ahead of this summer, we will proactively devise more substantial and detailed measures to reduce cooling costs for energy-vulnerable groups and heating costs for this winter."