Party and Government: "Electricity and Gas Price Hikes Inevitable... Vulnerable Groups Granted 1-Year Exemption"

Basic Livelihood Security Recipients and Disabled Persons Granted 1-Year Postponement on Rate Hike
Energy Cashback Support Provided to General Households
Small Business Owners and Farmers Allowed 3-Year Installment Payments

The People Power Party and the government have agreed that an increase in electricity and gas rates in the second quarter is inevitable, and have prepared support measures for vulnerable groups facing increased economic burdens due to the energy price hike.

On the 15th, Park Dae-chul, chairman of the People Power Party's Policy Committee, said at a briefing after the party-government meeting on electricity and gas rates held at the National Assembly, "Over the past month and a half, we have repeatedly deliberated while listening to the voices of the public and various sectors regarding electricity and gas rates," adding, "We have reached a consensus that the electricity and gas rates can no longer be postponed."

On that day, the party and government discussed support measures for vulnerable groups who may face immediate burdens from the rate increase. First, for energy-vulnerable groups such as basic livelihood security recipients and persons with disabilities, the increase will be mitigated for one year, and the energy voucher recipients will also be expanded.

Park Dae-chul, Chairman of the Policy Committee of the People Power Party, is speaking at the party-government consultation meeting on electricity and gas rates at the National Assembly on the 15th. Photo by Hyunmin Kim kimhyun81@

Additionally, for general households, starting in July, the incentive level and payment criteria for the electricity rate energy cashback will be expanded, and the progressive rate brackets will also be widened. For small business owners and root companies, an installment payment system for electricity bills will be implemented to ease the burden, while farmers and fishermen will have the rate increase spread out over time. Chairman Park stated, "For farmers and fishermen, the electricity rate increase will be applied in thirds over three years to reduce the burden," adding, "Policies to improve energy efficiency will also be promoted."

Chairman Park emphasized, "Based on the Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation's emergency management declaration, which added 7 trillion won to the previously prepared self-rescue plan, announcing a total of 41 trillion won in self-rescue measures by 2026, we were able to discuss the electricity and gas rate increases," adding, "(However) we will monitor whether these self-rescue plans by the two companies are implemented in a manner that meets public expectations."

Lee Chang-yang, Minister of Trade, Industry and Energy, held a briefing at the Gwanghwamun Seoul Government Complex in the morning and plans to finalize and announce the increase plan.

Earlier, in his remarks at the party-government meeting, Minister Lee explained the background of the rate increase, saying, "We conducted public opinion gathering from various sectors, and related ministries closely examined recent trends in the international energy market together," adding, "We reaffirmed that adjustment of electricity and gas rates is inevitable, and confirmed support measures for vulnerable groups who feel a relatively heavy burden from the rate adjustment, as well as the necessity of energy consumption efficiency and conservation."

He continued, "We announced a high-intensity self-rescue effort plan on the 10th, including returning salary increases of senior officials and selling key assets located in Seoul to improve fiscal soundness," adding, "We ask for much cooperation and support so that the government can faithfully implement energy policies."

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