Gyeongnam Province Urges Stop to Agricultural Electricity Rate Hikes... Requests Central Government for Compensation and Reduction

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] As the increase in electricity rates for agricultural use deepens the worries of residents, Gyeongnam Province has stepped in to block the proposed hike.

On the 14th, the province announced that it had requested the central government to prepare measures to compensate for the difference in the increased agricultural electricity rates and to lower the rate hike.

According to the province, from this year, Korea Electric Power Corporation applied a fixed unit price and uniformly raised electricity rates by 12.3 KRW/kWh twice, in April and October.

As a result, compared to January this year, agricultural use (Type A) increased by 74%, and agricultural use (Type B) by 36%, increasing the management burden on facility farms, leading Gyeongnam Province to seek a reduction in the rate hike through a request to the central government.

The province explained that the 9,950 hectares of facility horticulture cultivation area in the province accounts for 18.4% of the national total, and due to the characteristics of facility horticulture, heating and cooling costs account for about 35% of management expenses.

A provincial official said, “With the rise in agricultural electricity rates and agricultural material prices, the burden on farmers is increasing,” adding, “Our province, the nation’s number one region for facility horticulture, will continue to request the central government to ease the burden on farmers.”

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