發布日期:2023-01-27 03:57:17
Electricity meters in an apartment complex in Seoul. Korea Times file
Government set to raise gas rates again in July
By Lee Kyung-min
Surging utility bills resulting from higher global energy prices are feared to place a heavier financial burden on businesses and households in the coming months, already struggling with soaring prices of food, gasoline and other daily necessities, according to market analysts Monday.
The prices of key commodity items, including crude oil and liquefied natural gas (LNG), have skyrocketed over the past few months due to Russia's invasion of Ukraine, compounded by global oil demand far exceeding supply. Key oil-producing countries announced a plan to increase output, but the move has done little to ease market jitters.
Korea registered a 9.6 percent combined rise in electricity, gas and water prices last month, the highest increase since the government began compiling related statistics in January 2010. Electricity and city gas prices both jumped 11 percent, while water prices rose 3.5 percent.
The double-digit spikes and more rises in store in the coming months are set to accelerate inflation even further, as indicated by consumer prices that jumped 5.4 percent year-on-year last month, marking the highest increase since August 2008 when it hit 5.6 percent in the midst of the global financial crisis. Some market watchers say the figure could soar further to over 6 percent.
According to the Ministry of Trade, Industry and Energy and state-run Korea Gas Corp. (KOGAS), Korea will raise gas rates to 1.90 won per megajoule (MJ) next month, up from 1.23 won in May. It will rise further to 2.3 won in October.
The state-run energy firm says the increase is inevitable, since it suffered a 1.8 trillion won ($1.4 billion) loss as of last year.
The prices should and would have increased earlier, but the previous Moon Jae-in administration kept the prices of key utility fees under control to temper soaring inflation.
KOGAS maintains that the rates would be raised further in the coming months, since losses have already snowballed to 6 trillion won as of March, a figure certain to climb unless the ongoing Russia-Ukraine war finds a breakthrough.
A rapid widening of losses is a far greater concern for Korea Electric Power Corp. (KEPCO), which suffered an operating loss of 7.78 trillion won in the first quarter of this year, compared to a 5.8 trillion won operating loss for the whole of last year.
"We will submit a plan to the government, Thursday, to raise the electricity rate, as part of efforts to reflect skyrocketing global commodity prices," a KEPCO official said.
Seoul National University economist Lee In-ho said such changes are necessary. "The state-run energy firms will have to discuss with the government steps to set rates that can help them maintain financial soundness," he said.