Minister of Industry: "Electricity rate increase factors over 50 won next year... Doing our best to reflect the rates"

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy attended the meeting of the Special Committee for Supporting the 2030 Busan World Expo held at the National Assembly on the 26th and delivered opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Sejong=Reporter Dongwoo Lee] Lee Chang-yang, Minister of Trade, Industry and Energy, stated on the 15th that "the increase in the standard fuel cost next year is expected to be more than 50 won" in relation to electricity rates.

Minister Lee attended the plenary meeting of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee on the same day and said, "We will make efforts to reflect (the increase in the standard fuel cost) in the electricity rates in consultation with the price authorities as much as possible."

He added, "Although Korea Electric Power Corporation (KEPCO) announced a self-help plan worth more than 6 trillion won, we will review whether there are additional measures and request further self-help efforts," and "We will prepare a roadmap to resolve the deficit issue without shock in three major directions." The three directions refer to practical rate increases, amendments to the KEPCO Act, and efforts to improve financial conditions independently.

However, Minister Lee said, "It does not mean that the entire 50 won per kilowatt-hour (kWh) increase in the standard fuel cost factor will be reflected in next year's electricity rates." The 50 won increase is about 2.5 times the total annual electricity rate increase of 19.3 won this year.

He elaborated, "It means that the increase will be implemented gradually within a feasible range."

Meanwhile, on the same day, the amendment to the 'Korea Electric Power Corporation Act,' which increases the issuance limit of KEPCO bonds (KEPCO bonds) up to six times, passed the subcommittee of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee (SanJawi). This came seven days after a similar amendment was rejected at the plenary session on the 8th.

The amendment raises the KEPCO bond issuance limit from the existing two times to five times, and in urgent cases, it can be increased up to six times. However, at the request of the Democratic Party of Korea, a five-year sunset clause was applied to maintain the increased KEPCO bond issuance limit until December 31, 2027.

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