Energy Economics Institute, Electricity Rate Policy Seminar... Discussion on Fuel Cost Tariff System, etc.

"Regulatory Costs Such as Development, Policy, and Environmental Costs Must Be Reflected in Electricity Rates"

[Asia Economy Reporter Moon Chaeseok] The Korea Energy Economics Institute announced on the 1st that it will hold a policy seminar on the theme of 'Policy Tasks for Transition to a Rational Electricity Tariff System' at 2 p.m. on the 2nd in Seminar Room A at HJBC Gwanghwamun Branch in Seoul.

This seminar was prepared to explore ways to reform the electricity tariff system rationally in order to successfully implement energy transition policies and appropriately respond to environmental changes surrounding the power industry.

Senior Research Fellow Park Kwangsoo of KEEI will give a presentation on the topic of 'Energy Policy and Directions for Rationalizing Electricity Tariffs.'

Senior Research Fellow Park will examine the current status and problems of the existing electricity tariff system. He plans to suggest rational improvement directions for the electricity tariff system to successfully implement energy transition policies.

He will propose three major improvement directions.

He will suggest establishing a cost-based tariff system that reflects regulatory costs in electricity tariffs. This means incorporating generation costs, policy costs, actualized external costs, and coal-fired power volume regulations for fine dust reduction into the tariffs.

Along with this, he will propose improvements to the current tariff system by usage category. He will also emphasize the need to improve the regulatory system to ensure that the principles of electricity tariff determination are observed by securing the independence of regulatory agencies.

Kim Beomjo, Executive Director of the Korea Environment Institute (KEI), will present on the topic 'Improvement Measures for Electricity Tariff System in Response to Environmental Changes: Focusing on Overseas Cases.'

Executive Director Kim will review the increased volatility of fuel costs due to expanded fluctuations in oil prices and the current status of increased policy costs and investments due to energy transition policies.

He plans to propose measures to prevent the expansion of side effects such as national economic losses and changes in burdens among consumers caused by these factors.

He will present overseas cases showing that establishing a system that separately reflects fuel costs and policy costs in tariffs can induce rational electricity consumption and resolve fairness issues among consumers.

In particular, he will emphasize that environmental costs have the effect of raising consumer awareness of energy transition.

In the comprehensive discussion, Senior Research Fellow Yoo Soo Lee of KEEI will serve as the chair, with panelists including Seok Kwanghoon, Specialist at Green Korea United, Professor Yoo Seunghoon of Seoul National University of Science and Technology, Professor Joo Seonggwan of Korea University, and Hong Hyeran, Secretary General of Energy Citizens’ Solidarity.

Meanwhile, considering the implementation of social distancing level 2 due to the spread of COVID-19, the seminar will be conducted in real-time non-face-to-face format.

All contents of the seminar will be broadcast live through the KEI YouTube channel. Presentation and discussion materials will be posted on the KEI website on the 2nd.

Data provided by Energy Economics Institute

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