Research Institutes Hit Hard by Electricity Rate Hike... "Financial Support Needed"

Government-funded research institutes in the field of science and technology (hereinafter referred to as research institutes) have recently been found to be experiencing financial difficulties due to increased electricity costs. The need for financial support is being raised as the operating expense budgets are tight enough that they cannot bear the burden of electricity fees.

According to Hwang Jeong-ah, a member of the National Assembly’s Science, Technology, Information and Broadcasting Committee (representing Daejeon Yuseong), the total electricity fees paid by 24 research institutes (excluding the National Green Technology Institute, which uses leased buildings making separate electricity fee calculation difficult) from January to July amounted to 61.47 billion KRW, with an average monthly electricity expenditure of 8.78 billion KRW.

During the same period (January to July), the annual electricity fees were 39.79 billion KRW (monthly average 5.68 billion KRW) in 2021, 43.54 billion KRW (6.22 billion KRW) in 2022, and 52.79 billion KRW (7.54 billion KRW) last year, showing an increasing trend. Arithmetically, the electricity fees paid from January to July this year increased by 54.5% compared to 2021.

Looking at the electricity fee payment status by research institute, the Korea Atomic Energy Research Institute paid 8.02 billion KRW from January to July this year, bearing the largest electricity cost burden among the surveyed institutes. The Korea Institute of Fusion Energy paid 5.07 billion KRW, and the Korea Institute of Science and Technology Information paid 4.48 billion KRW, following behind.

The main reason for the increasing electricity cost burden every year is the rise in electricity rates. The problem is that as electricity fees increase, the operating expenses of the research institutes do not increase accordingly, which exacerbates their financial burden. This raises concerns as it could lead to disruptions in the research activities, which are the primary functions of the research institutes.

For example, last year, the Korea Institute of Science and Technology Information temporarily suspended the Global Super Data Hub Center (GSDC) system due to the burden of electricity fees caused by the rise in electricity unit prices.

In particular, the operating expenses of the research institutes this year amount to 81.53 billion KRW, which is about 8 billion KRW less than three years ago (2021). Although the government’s budget proposal submitted to the National Assembly for next year is slightly increased to 83.83 billion KRW compared to this year, it is still confirmed to be about 5.7 billion KRW smaller than in 2021.

Assemblywoman Hwang emphasized, "Due to the nature of research institutes, which operate heavy machinery and facilities continuously, they are directly hit by the increase in electricity fees," adding, "Stable and continuous support is necessary so that research institutes can focus on their research."

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