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ELECTRICITY RATE TO BE INCREASED
입력 2021.09.24 (15:25) 수정 2021.09.24 (16:45) News Today
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[Anchor Lead]

Electricity rate will be increased for the first time in eight years. A four-person household is likely to pay on average an additional 1,050 won more per month in electric bill. A higher fuel cost has pushed up the rate, which will ultimately drive up inflation.

[Pkg]

Jo Yeong-ok who operates her own store is already worried. Her electricity bill will increase come next month. The increase will be three won per kilowatt-hour... implying that a four-person household will have to pay an additional 1,050 won per month on average. Jo who paid more than 180,000 won last month in electric bill will have to pay about 4,000 won more. This is the first increase in electricity rate in eight years, since November 2013.

[Soundbite] Jo Yeong-ok(Business Owner) : "Vegetables cost more and power costs more. Such increases are too much for such a small store to bear."

The government and Korea Electric Power Corporation, known as KEPCO, must have decided to adjust electricity cost after not having adjusted it for two straight quarters. The increase was driven by a higher fuel cost in power generation. In fact, the price of Dubai crude oil is 40% higher than earlier in the year and the cost of bituminous coal for power production spiked 126%. Given these changes, the electricity rate should be raised by 13.8 won per kilowatt-hour. But three won is the most increase allowed per quarter. In addition, KEPCO and six power-generation affiliates are projected to lose four trillion won this year, making the rate hike inevitable.

[Soundbite] Prof. Sung Tae-yoon(Dept. of Economics, Yonsei Univ.) : "It’s hard to bear the cost with the current rate, so additional increases may be made."

Now the problem is inflation. Consumer prices have increased more than 2% for five months in a row. Even a major local dairy company has decided to raise prices recently. A higher electric bill is likely to drive up the inflation rate even more under such circumstances.

[Soundbite] Park So-yeon(Researcher, Shinyoung Securities) : "Most foreign power companies are privately owned, so a higher fuel cost tend to immediately drive up the power rate. Higher fuel costs could affect the import prices for S. Korea."

Fearing added trouble due to the pandemic, small and medium businesses demanded a reduction in electricity bill or a special power rate system for small businesses.
  • ELECTRICITY RATE TO BE INCREASED
    • 입력 2021-09-24 15:25:19
    • 수정2021-09-24 16:45:37
    News Today
[Anchor Lead]

Electricity rate will be increased for the first time in eight years. A four-person household is likely to pay on average an additional 1,050 won more per month in electric bill. A higher fuel cost has pushed up the rate, which will ultimately drive up inflation.

[Pkg]

Jo Yeong-ok who operates her own store is already worried. Her electricity bill will increase come next month. The increase will be three won per kilowatt-hour... implying that a four-person household will have to pay an additional 1,050 won per month on average. Jo who paid more than 180,000 won last month in electric bill will have to pay about 4,000 won more. This is the first increase in electricity rate in eight years, since November 2013.

[Soundbite] Jo Yeong-ok(Business Owner) : "Vegetables cost more and power costs more. Such increases are too much for such a small store to bear."

The government and Korea Electric Power Corporation, known as KEPCO, must have decided to adjust electricity cost after not having adjusted it for two straight quarters. The increase was driven by a higher fuel cost in power generation. In fact, the price of Dubai crude oil is 40% higher than earlier in the year and the cost of bituminous coal for power production spiked 126%. Given these changes, the electricity rate should be raised by 13.8 won per kilowatt-hour. But three won is the most increase allowed per quarter. In addition, KEPCO and six power-generation affiliates are projected to lose four trillion won this year, making the rate hike inevitable.

[Soundbite] Prof. Sung Tae-yoon(Dept. of Economics, Yonsei Univ.) : "It’s hard to bear the cost with the current rate, so additional increases may be made."

Now the problem is inflation. Consumer prices have increased more than 2% for five months in a row. Even a major local dairy company has decided to raise prices recently. A higher electric bill is likely to drive up the inflation rate even more under such circumstances.

[Soundbite] Park So-yeon(Researcher, Shinyoung Securities) : "Most foreign power companies are privately owned, so a higher fuel cost tend to immediately drive up the power rate. Higher fuel costs could affect the import prices for S. Korea."

Fearing added trouble due to the pandemic, small and medium businesses demanded a reduction in electricity bill or a special power rate system for small businesses.
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