-3.0 won per kWh following the first quarter
The government and Korea Electric Power Corporation delayed the increase in electricity rates in the second quarter of this year (April to June). Accordingly, the fuel cost adjustment unit for the second quarter was set at -3.0 won per kWh, the same as in the first quarter.
On the 22nd, KEPCO announced that it would freeze the fuel cost adjustment unit for April-June this year through an announcement on its website. In the second quarter, the same rate system as in the first quarter is applied.
KEPCO said, “The fuel cost adjustment unit price adjustment factor occurred due to the rise of international oil prices, but it reserves to immediately reflect the effect of a temporary surge in the price of liquefied natural gas due to the cold wave over last winter, and people who are struggling with the prolonged Corona 19 life. “I received a notice of reservation from the government in order to promote the stability of the country.”
The government notified KEPCO that it is necessary to keep the adjusted unit price in the second quarter the same as in the first quarter (-3 won/kWh) by using the unadjusted amount incurred when determining the adjusted unit price in the second quarter.
Earlier, the government announced a policy of “with the introduction of the fuel cost indexing system, we will withhold the rate adjustment in exceptional circumstances such as a sharp increase in oil prices within a short period of time.”
The industry believes that the decision to hold reflects concerns that an increase in electricity rates may stimulate public prices.
According to the decision to reserve, for a 4-person household that uses an average of 350 kWh per month in the second quarter, the cut effect is expected to continue by up to 1050 won per month in the first quarter.
Considering that a four-person household uses an average of 350 kWh per month, the electricity bill is around 54,000 won.
This is the second adjustment this year since the introduction of the fuel cost indexing system. The fuel cost linkage system reflects the fuel cost linkage for electricity production, such as liquefied natural gas, coal, and oil, in the electricity rate every three months.
The change in fuel cost is the value obtained by subtracting the’standard fuel cost’ from the’performed fuel cost’. The actual 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.
Meanwhile, an industry official said, “Although KEPCO froze its electricity rates in the second quarter, if the trend of producing electricity with expensive renewable energy instead of cheap nuclear power plants and coal continues, it is expected that a rate increase will be inevitable.”
[시사경제신문=서경영 기자]
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