[단독] Electricity bills will rise again… Gas Power Generation Ranked No. 1 in LNG Value

Due to the government’s de-coaling policy, gas power generation, represented by liquefied natural gas (LNG) in Korea, has surpassed thermal power generation for the first time in history and has become the’first power plant’. However, concerns are growing as the fluctuations in international LNG prices have quadrupled in a year and are fluctuating like rubber bands. Experts raised concerns that not only will consumer electricity rates rise in the future, but also that KEPCO, a state-owned company, may be burdened with a deficit.

According to KEPCO on the 17th, gas was 16,634 GWh in the most recent December, by energy source division, which was the most recent figure, reversing the coal power generation of 10,814 GWh. Since the start of the statistics in 2014, gas power has become the first power plant in which coal and nuclear power have been occupied alternately throughout the year. In particular, the recent uptrend has been steep. In December 2016, before the administration of Moon Jae-in took over, coal was 1,7414 GWh, and gas was only half of 9314 GWh, which reversed after 5 years of rapid increase in gas power generation. The problem is that gas prices are jumping like a rubber band. LNG, which is normally used for heating and power generation, is imported through mid- and long-term contracts from Korea Gas Corporation by predicting the amount of demand on a regular basis. However, if demand increases significantly, short-term spot transactions increase and prices are greatly affected. According to data received from the Korea Gas Corporation, Rep. Yoon Young-seok, the international average price of LNG short-term spot transactions on January 13-14, was $32.5 per MMBtu, compared to $7.857 per MMBtu on December 1 last year. I jumped more than twice. As demand, which had been gathered again this month, has been resolved, it has truly entered a phase, but there is a high possibility that it will surge again at any time.

In fact, experts do not see this phenomenon as a temporary problem. It is pointed out that if the corona 19 quarantine situation improves due to the supply of vaccines, etc., there is a high possibility that the amount of energy consumption will increase further, mainly by means of transportation such as aviation and automobiles. Prof. Ongi-Woon of Soongsil University said, “LNG prices follow oil prices with a three-month lag, but considering the recent rise in oil prices, the rise in LNG prices in the second half seems inevitable.” “There is.

If fuel costs increase like this, electricity bills also rise. According to the fuel cost indexing system introduced from this year, changes in fuel costs such as LNG, coal, and oil are reflected in electricity rates every three months. If energy prices rise sharply like now, electricity bills of up to 5 won per kwh per year increase. For example, if a household for four people (average 350kwh per month) is 55,000 won per month, the maximum increase is 1750 won. In addition, the deficit of KEPCO, a public company, is expected to increase. Prof. On said, “The current fuel cost index is limited to 3 won per kwh per quarter,” he said. “In fact, KEPCO has to pay for the fuel cost of the difference.” In addition, KEPCO is also receiving fierce demands for conserving deficits caused by this year’s public power plant’s de-coaling policy, which is highly likely to result in an additional fiscal burden.

Experts advised that expansion of nuclear power is necessary for stable power supply. Professor On said, “In fact, if the proportion of LNG with large price fluctuations is excessively high even though all of it is imported, there may be problems in energy security.” I can,” he advised.

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