Although the government has raised electricity rates by an average of 4,000 won per month for a household of four in the first quarter of this year, it is noted that it is not enough to reflect the sudden increase in raw material costs. As for gas rates, KOGAS receivables are expected to snowball as it failed to raise rates in the first quarter.
In particular, there is an analysis that it will be difficult to raise rates to a large extent this year without the government reforming the current electricity rate system. Energy experts advise that the government should promote corporate efficiency investment by presenting a road map for electricity rate increases in detail.
The Ministry of Trade, Industry and Energy and Korea Power Electric Corporation (KEPCO) will increase electricity rates by 13.1 won per kWh in the first quarter of this year. In particular, it was decided to increase the ‘electricity rate’ of 11.4 won per ㎾h, which reflects some of the fuel prices that rose last year, and the ‘climate and environment fee’, which reflects the cost of achieving new and renewable energy. obligations and the cost of greenhouse gas emission rights, by 1.7 won per ㎾h. As a result, the electricity rate increase rate in the first quarter of this year is 9.5%. Based on the average monthly consumption of 307㎾h for a household of 4 for residential use, it is expected to increase 4,022 won (excluding VAT and electricity-based fund).
On the other hand, gas rates cannot be raised at all in the first quarter due to the burden of winter rate hikes. In the spring, summer and fall, when demand for gas is low, the impact of the rate increase is negligible. Accounts receivable from KOGAS, which increased to 5.7 trillion won from the third quarter, is expected to expand further.
The government has not yet confirmed whether the scale of the annual increase in electricity and gas rates will be raised this year or not. Industry Minister Lee Chang-yang said in a briefing on the 30th of last month, “After the second quarter, we intend to review whether the level of increase will be considered comprehensive after the energy price trend international, then the financial. company structure, and then the price situation.” .
In particular, there is an analysis that it is difficult to raise electricity rates significantly under the current system. This is because the current fuel cost indexation system stipulates that the annual upper and lower limits cannot exceed 5 earned per kWh. The Ministry of Trade, Industry and Energy demanded the expansion of the upper and lower limits, but it is known that the Ministry of Strategy and Finance, the price authority, did not accept it.
Given the current structure of gas rates, a major increase is unlikely. Since KOGAS can accumulate receivables, it is relatively less exposed to financial risks like KEPCO. For this reason, there is an analysis that it is difficult for the price authorities to accept the increase in the gas rate more.
An energy expert pointed out that the government should first present an annual road map for raising electricity rates in detail. In particular, it is noted that the government does not give a clear message, although the electricity price increase should be used as a signal to encourage companies to invest in energy efficiency.
Park Jong-bae, a professor of electrical engineering at Konkuk University, said, “Since there was no specific signal for rate hikes in the second, third, and fourth quarters of this year, uncertainty has increased for companies that need to invest in energy. efficiency.” , and the upper and lower limits of fuel costs should be expanded to 10 won per kWh.”
Reporter Byun Sang-geun sgbyun@etnews.com
