Gwangju City Freezes Urban Gas Consumer Rates

[Asia Economy Honam Reporting Headquarters, Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 30th that it has frozen the city gas consumer rates effective from the 1st of next month.

According to the accounting firm's service results, factors causing an increase compared to the previous year (5.47 KRW/㎥, 6.55%) such as labor costs reflecting the minimum wage increase rate, customer center fees, and new pipeline investment costs occurred, but to stabilize prices and reduce the living expenses burden on citizens including low-income households and small business owners, this decision was made.

This is a measure to stabilize the livelihood economy, following the announcement of the 2nd Livelihood Stabilization Measures to Protect the Local Economy from COVID-19 in March, which included freezing six major public charges (water supply, sewage, city gas, city buses, taxis, urban rail).

Since 2018, Gwangju has experienced factors causing an increase in city gas consumer rates, but it has frozen the rates for three years and decided to induce city gas businesses to absorb cost increases through management efficiency.

Additionally, when adjusting city gas consumer rates this time, Gwangju plans to actively promote investment in supplying city gas to unserved and marginalized areas to expand city gas coverage.

Oh Dong-gyo, Director of the Energy Industry Division of the city, said, “By freezing city gas consumer rates, we aim to minimize the burden on the low-income economy struggling due to COVID-19 and will do our best to expand city gas coverage in marginalized areas.”

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