From Next Year, Busan and Daejeon Urban Gas Inlet Pipeline Construction Costs Will Be Fully Borne by Project Operators

[Sejong=Asia Economy Reporter Joo Sang-don] Starting next year, in the Busan and Daejeon areas, the installation cost of the service pipe, which is the pipeline installed from the city gas supply pipe to the residential site, will be fully borne by the business operator. Although the service pipe is the asset of the city gas provider, until now, when single-family houses, multi-family houses, and multiplex houses wanted to use city gas, the consumer has borne half of the installation cost.

On the 10th, the Fair Trade Commission announced that it had agreed to revise the city gas supply regulations, which required consumers to bear 50% of the service pipe construction costs in Busan and Daejeon.

As part of proactive administration, the Fair Trade Commission has been discussing improvement measures with relevant local governments regarding the supply regulations that require consumers to bear the construction costs of the service pipe installed by city gas providers to supply city gas.

The service pipe is the pipeline installed from the city gas supply pipe to the residential site and is the asset of the city gas provider. When constructing housing complexes with 100 or more households (such as apartments), the city gas provider bears the full cost, but for single-family houses, multi-family houses, and multiplex houses, consumers have been responsible for 50% of the installation cost of the service pipe.

Accordingly, last year, households newly installing city gas in Busan bore a total of 3.5 billion KRW (an average of 1.32 million KRW) in service pipe construction costs. In Daejeon, the total was 1.3 billion KRW (an average of 1.17 million KRW).

A Fair Trade Commission official said, "With the implementation of the revised supply regulations starting next year, newly installing city gas households will be able to reduce their burden of service pipe construction costs by around 1.2 million KRW on average," adding, "We will continue to negotiate with other local governments such as Incheon and Gwangju, where consumers currently bear part of the service pipe construction costs."

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