Gyeongnam Province Minimizes Increase in City Gas Supply Costs... Consumer Rates Expected to Decrease

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] Gyeongsangnam-do announced on the 24th that it held the 'Consumer Policy Committee' and decided the average supply cost for city gas companies to be applied from July 1st this year.

City gas consumer rates consist of raw material costs (about 85~90%) approved by the Minister of Trade, Industry and Energy and supply costs of city gas companies (10~15%) approved by the governor. The supply costs are adjusted annually according to the Ministry of Trade, Industry and Energy's 'City Gas Company Supply Cost Calculation Standards.'

Recently, due to the economic downturn caused by the novel coronavirus infection (COVID-19), the estimated city gas sales volume is predicted to decrease by 3% to 8.6%, resulting in factors for increasing the average supply cost. However, the 'Gyeongnam-do Consumer Policy Committee' decided on a review plan to minimize the increase in city gas rates to reduce the fuel cost burden on consumers.

The 'supply costs' reviewed this time were adjusted to increase by 2.5% to 8.7% depending on the three city gas companies. On the other hand, the overall city gas 'consumer rates' were lowered by about 7%, and it is expected that general consumers using 25,000 MJ annually will save about 30,000 KRW.

This is due to the expected approximately 10% reduction in city gas raw material costs, which the Ministry of Trade, Industry and Energy approves bimonthly.

Kim Young-sam, Director of the Industrial Innovation Bureau of Gyeongnam Province, explained, "We will do our best to improve the energy usage environment for energy-vulnerable groups by simultaneously implementing city gas supply and LPG supply policies."

This content was produced with the assistance of AI translation services.