Korea Electricity Association hosts LAN line for the first electricity policy forum this year
Greater positive effect on electricity bill reform… Need for continuous improvement
[일렉트릭파워 박윤석 기자] Along with the reorganization of electricity rates at the end of last year with the fuel cost index and climate environment cost notice as the main content, a meeting was prepared to discuss the direction of the electricity rate system to realize carbon neutrality.
The Korea Electricity Association (Chairman Jong-gap Kim) held the first electricity policy forum this year on January 26 at the Electricity Hall in Songpa-gu, Seoul, with the theme of’Electricity Rate Policy Direction in the Era of Climate Crisis’.
At the forum, which was broadcast live on YouTube, Seoul National University Professor Moon Seung-il, KEPCO KEPCO rate policy director Shin Kyung-hyu, and Lee Yoo-jin, Ph.
The panelists gave an overall positive evaluation of the climate and environment cost, which separates and announces the fuel cost index and environmental costs such as RPS cost and emission right purchase cost, which vary depending on international oil prices. It was expected that it would be an opportunity to increase public acceptance of energy conversion by transparently disclosing information on electricity rates to consumers.
However, some pointed out that it is necessary to prepare a more detailed and advanced electricity tariff system in order for the mid- to long-term energy policy to be effective in responding to the climate crisis such as expansion of renewable energy and carbon neutrality.
Various rate systems such as green rate system
Seoul National University professor Moon Seung-il emphasized that it is natural to reflect fluctuations in fuel costs such as coal, oil, and LNG, which are raw materials necessary for electricity production, into electricity rates.
Professor Moon said, “If the fuel cost linkage is not implemented, KEPCO will make excessive profits or lose losses depending on the fuel cost fluctuations. Both are problems,” said Professor Moon. If not, the damage will be returned to the people intact,” he explained the justification of the fuel cost indexing system.
In addition, he added, “Inexpensive electricity bills encourage inefficient energy consumption in the industry, which in turn lowers national competitiveness.” He added, “In the end, such an increase in inefficient energy consumption also leads to a burden on the public.”
Professor Moon said that it is important to introduce a variety of tariff systems that can induce price declines in the mid to long term, rather than pointing out the immediate rise in electricity rates due to the expansion of green energy.
Professor Moon said, “Selective electricity rates, such as the green rate plan, which can lower the price of green energy more quickly, must be activated.” Said.
“Based on the electricity rate policy in this direction, a device must be prepared for RE100 participating companies to directly trade green energy.” “Only when the people voluntarily participate in the government’s green new deal plan can approach the goal.” He suggested.
We need to get out of the government-led electricity rate decision system
KEPCO’s charge policy manager Shin Kyung-hyu predicted that the cost-linked tariff system, which will be implemented from this year, will have a positive impact on the implementation of energy policy in the future, as it increases transparency in electricity rates.
“With the fuel cost linkage system, fuel cost fluctuations are regularly reflected in electricity rates, and the price signal function has been strengthened.” “Consumers’ predictability for the adjustment of electricity rates has increased, enabling reasonable electricity consumption to be induced.”
“As climate and environment costs, which were included in the existing electricity bills, are separately charged, consumers are clearly aware that costs are incurred for clean and safe electricity consumption.” “The conditions for voluntary participation in the expansion of eco-friendly energy It was prepared.”
Dr. Yoo-jin Lee of Green Transformation Research Institute predicted that the global economy will move in the future based on carbon emissions as the international community has declared carbon neutral. In other words, a country with carbon reduction technology and experience and renewable energy competitiveness will lead the global economy in the future.
Dr. Lee said, “The connection between the trade and industrial policies and energy policies of each country is inevitably increased, so an era is approaching where it is difficult to sustain trade and economy without energy conversion.” “The EU announced the introduction of the carbon border adjustment system in 2023. It is also important to prepare countermeasures for individual domestic companies, but the government must actively work to lower the energy carbon intensity.”
In addition, “the direction of power policy in the era of climate crisis is changing to decarbonization, decentralization, and digitalization.” To achieve this transition smoothly, energy rates and market systems must be established along with reorganization of related systems. I can do it.”
Dr. Lee emphasized that in order to calculate the power market that meets the 2050 carbon neutral target, a new sketch of the proportion of renewable energy, grid access, storage devices, market systems, and electricity rates should be drawn up.
Dr. Lee said, “It is difficult to capture the rapidly changing electricity industry and market with the current electricity tariff system and determination method.” “The role of the electricity sector is important in the era of carbon neutrality, but it is difficult to expect innovation under the price system determined by the government as it is now. I can see it.”
He added, “We need to guarantee various market participants based on public standards and principles. We need to discuss the design of the electricity market in which price signals work and the establishment of an electricity rate determination system.”
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