GAS AND POWER RATE RISE

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Gas and power fees are going up, starting today, in the wake of surging international energy prices. The price hike is likely to add about 3,000 won on each household’s monthly utility bill.

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The Ministry of Trade, Industry and Energy announced that gas price would increase by an average of 1.8% from Friday. Residential gas fee would go up by 3% while commercial establishments will be billed 1.2 or 1.3% more depending on the type of business. Subsequently, residential gas would cost an additional 0.43 won per megajoule and commercial gas 0.17 won. The Ministry had been saying since late last year that energy prices would have to be raised because of spiking international gas prices. Out of the increased import cost of natural gas, the uncollected amount not reflected in the monthly bill soared to 1.8 trillion won by the end of 2021. The government sets a benchmark fuel cost every two months based on the changes in energy prices. This is the first price hike in 21 months since gas price was lowered 13.1% in July 2020. But households stand to suffer more financial burden as the gas price increase comes on the heels of an electricity rate hike. Starting Friday, a four-member household that uses an average of 307 kilowatts of electricity per month will have to pay 2,120 won more. As homes with monthly average use of 2,000 megajoules of gas must pay additional 860 won, the monthly increment of energy bills adds up to about 3,000 won more. On top of it all, three more gas price hikes are planned, starting in May. The Korea Gas Corporation’s fuel cost settlement prices voted in last December show the cost increase per megajoule would stand at 1.23 won in May, 0.67 won in July and 0.4 won in October. That means that a household that uses a monthly average of 2,000 megajoules of gas would be billed an additional 5,460 won after October.