Last Year's Electricity Sales Expected to Decline for Second Consecutive Year... Decrease Observed During Each 'Corona Pandemic'

[Asia Economy Reporter Moon Chaeseok] As the COVID-19 pandemic prolonged, electricity sales from January to November last year decreased by 2.4% compared to the same period the previous year. Sales declined during each pandemic wave.

According to Korea Electric Power Corporation's 'November Electricity Statistics Bulletin' on the 11th, electricity sales from January to November last year totaled 464,243 GWh, down 2.4% from the same period the previous year.

Trends in electricity sales recorded in Korea Electric Power Corporation's 'November Electricity Statistics Bulletin.' (Source: Korea Electric Power Corporation)

Notably, the pattern of 'industrial and general use decreasing while residential use increasing' repeated during each pandemic period.

The decrease in industrial electricity sales was due to the overall contraction of domestic industries and export setbacks caused by COVID-19, which reduced factory operations. General use electricity, including that of self-employed businesses, was also directly hit by the pandemic.

As social distancing levels increased and remote work expanded, residential electricity demand actually rose.

During the peak of the 'first pandemic' in April domestically, electricity sales were 40,475 GWh, down 4.6% compared to the same period the previous year. Industrial use (-6%) and general use (-5.5%) decreased, while residential use increased by 5.6%.

In August, during the 'second pandemic' period, sales were 44,599 GWh, down 6.2% year-on-year. Despite summer being a season when electricity sales typically rise due to heatwaves, sales decreased compared to the previous year.

Industrial and general use recorded -6.4% and -7.2%, respectively. This pattern may repeat in December, the 'third pandemic' period. However, in December, industrial sales may increase due to export rebounds, and residential sales may rise due to the 'cold wave effect.'

Regardless of the December results to be announced early next month, the annual electricity sales for last year are highly likely to record a negative growth for the second consecutive year.

In this case, following 2019, which recorded the first negative growth in 21 years since the 1998 financial crisis, a decrease will be observed for two consecutive years.

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