Jeonbuk Province Lowers City Gas Supply Cost by 2.34% Starting This Month

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonbuk Province announced on the 6th that it will reduce the urban gas supply cost by an average of 2.34% (2.02 KRW/㎥) starting this month to alleviate the burden on the common people's economy suffering from the prolonged COVID-19 crisis.

It also added that the basic fee will be frozen at 750 KRW.

The adjustment of urban gas rates was made by comprehensively reflecting the decrease in industrial volume due to the impact of COVID-19 and the investment costs for pipelines in areas where urban gas is not supplied.

In particular, some factors for increase, such as rising labor costs and investment costs for supply expansion, were coordinated to be reduced through cost-cutting by each urban gas company.

According to the province, urban gas consumer rates are determined by combining the wholesale rate of Korea Gas Corporation (86%) and the retail supply cost of urban gas companies (14%).

The wholesale rate is approved and announced monthly by the Minister of Trade, Industry and Energy, and the retail supply cost is the total cost required for urban gas supply, sales, and maintenance divided by the annual expected sales heat quantity, adjusted once a year by the governor and reflected in consumer rates.

The basic fee for residential urban gas in Jeonbuk has been frozen for 15 years since it was reduced from 810 KRW in 2007 to 750 KRW, and it is set 91 KRW lower than the national average residential basic fee of 841 KRW.

With this consumer rate adjustment, residential consumers in Jeonju using an average of 50㎥ per month are expected to save about 120 KRW monthly compared to the previous year (as of September 2020).

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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