"Scared to Receive Heating Bills"... Worry Over Electricity and Gas Charges Amid Fierce 'Bukgeuk Hanpa'

Significant Increase in City Gas, District Heating, and Electricity Fees
Already Soaring Prices... Gradual Rate Hikes Expected Next Year

[Asia Economy Reporter Yoon Seul-gi] As the Arctic cold wave intensifies and temperatures drop sharply, electricity demand has surged. The use of various heating devices has increased due to the severe cold, and the significantly higher electricity and gas bills this year are adding to household burdens.

According to Korea Electric Power Corporation (KEPCO) on the 23rd, when cold wave warnings were issued nationwide, the maximum power demand (the moment of highest electricity usage in a day) reached 94.5 GW (gigawatts) as of 11 a.m., marking the highest level for both summer and winter seasons. This surpassed the record set just the day before. On the 22nd, power demand rose to 93.0 GW.

The problem is that electricity and heating fees have risen sharply this year. According to the November Consumer Price Index released by Statistics Korea, city gas, district heating fees, and electricity charges increased by 36.2%, 34%, and 18.6% respectively compared to the same period last year. Electricity rates increased three times this year (in April, July, and October), with the per kWh electricity charge rising by 2.5 KRW, the base fuel cost by 9.8 KRW, the climate environment charge by 2.0 KRW, and the fuel cost adjustment charge by 5.0 KRW, totaling an increase of 19.3 KRW.

On the 26th, when the severe cold wave continued, the Han River near Gwangjin Bridge in Seoul was frozen. This year's freezing of the Han River was observed 16 days earlier than the average year and 15 days earlier than January 9, 2021, the winter before last. Photo by Kang Jin-hyung aymsdream@

Residential heating fees (charges applied based on heating and hot water usage) also rose significantly. From 65.23 KRW per 1 Mcal (megacalorie) in March this year, the rate increased by 37.8% to 89.88 KRW last month. This is the first heating fee increase in about three years since August 2019, and the first time since the heating fee system reform in September 2015 that fees have been raised three times in a year.

The biggest factor behind the heating fee hike was the Russia-Ukraine war that began in February. Amid the endemic phase of COVID-19, the war triggered instability in energy supply chains, prompting the fee increases.

Citizens have started saving energy to avoid a "heating bill bomb." Various tips for saving heating costs are actively shared on YouTube and social networking services (SNS). Methods to save on heating bills include ▲changing boiler settings between ondol mode and indoor mode depending on the boiler temperature sensor location ▲partially closing the boiler valve ▲using the boiler and humidifier together ▲hanging thick curtains and laying carpets, among others.

However, worries about heating bills remain even after preparing for winter. Mr. Jung, a worker in his 50s, said, "I bought insulation materials and attached them to the windows, but since I live in an old apartment, cold air still comes in easily. As the air gets colder, the boiler keeps running, and I’m scared to receive the heating bill."

Although electricity and gas prices have already soared, the burden of heating costs is expected to increase further next year. The government announced that it will gradually adjust rates to fully resolve the accumulated deficits and unpaid balances of Korea Electric Power Corporation and Korea Gas Corporation by 2026.

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