Gyeongnam Province Decides City Gas Supply Costs Effective July 1

Supply Cost Reduction and Freeze to Alleviate Burden on Ordinary People's Economy Due to COVID-19

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do has decided the average supply cost of city gas companies to be applied from July 1.

Gyeongnam Energy reduced by 0.74%, Kyungdong City Gas reduced by 0.98%, and GS E&G remains unchanged.

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 cost is calculated and adjusted annually according to the supply cost calculation standards for city gas companies set by the Ministry of Trade, Industry and Energy.

To ensure fairness of the supply cost, a certified public accounting firm analyzes the financial statements and audit reports submitted by the three city gas companies and finally presents the city gas supply cost service report.

Afterward, the province reviews the appropriateness and validity of the supply cost and submits it to the Gyeongsangnam-do Consumer Policy Committee for deliberation.

To induce the city gas companies' independent management rationalization and business activities, the supply cost was adjusted by minimizing labor cost increases and cutting some operating expenses.

The province has been promoting a project to support the installation cost of city gas supply pipelines for detached houses in areas where city gas can be supplied since 2015.

From the end of this year, city gas will also be supplied to Sancheong and Hapcheon, which remained as city gas non-supply areas within the province.

Additionally, Obiri, Yeoncho-myeon, Geoje-si, where city gas was not supplied, is expected to receive city gas supply in the second half of next year.

Namhae, where city gas supply was difficult due to geographical conditions, completed a county-level LPG pipeline network project in April this year and is supplying about 3,000 households.

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