When oil prices keep rising until the second half of the year
I have no choice but to raise the electricity bill for the third quarter.
In the aftermath of Corona 19, KEPCO delayed an increase in electricity rates in the second quarter.
On the 22nd, KEPCO released the calculation details of the fuel cost adjustment unit price for the second quarter on its website. As the increase in electricity rates for the second quarter (April-June) was delayed, the fuel cost adjustment unit price for the second quarter was set at -3.0 won per kwh following the first quarter.
Initially, considering the trend of rising fuel costs over the previous three months, electricity rates for the second quarter are expected to rise in 7 years since November 2013. As KEPCO is introducing a cost-linked rate system (fuel cost-linked system), changes in fuel costs for each three months of electricity production, such as liquefied natural gas (LNG), coal, and oil, are reflected in electricity rates.
The change in fuel cost is the value obtained by subtracting the’standard fuel cost’ from the’performed fuel cost’, and the earned fuel cost refers to the average fuel cost for the previous three months, and the standard fuel cost refers to the average fuel cost for the previous year.
According to KEPCO, the price of bituminous coal averaged 113.61 won per kg, LNG price was 508.97 won, and BC (bunker seed) oil was 442.64 won for the previous three months (December 2020 to February 2021). Compared to the bituminous coal price of 108.65 won, LNG of 350.24 won, and BC oil of 373.33 won, they all increased.
Earlier, the government introduced the fuel cost indexing system and announced a policy to withhold the rate adjustment when an exceptional situation such as a sharp rise in oil prices occurs within a short period of time.
Once reserved, but if oil prices continue to rise until 2H11, a rise in electricity rates in 3Q is expected to be inevitable.
/ Reporter Ji-young Shin [email protected]