South Korea to raise electricity prices for Q1 2023 by nearly 10% (updated)

Korea Electric Power

30/12/2022 03:48

(Adds milestones)
       SEOUL, Dec 30 (Reuters) - South Korea will raise
electricity prices for the first quarter of 2023 by 13.1 won per
kilowatt-hour, a 9.5% increase that is the highest in four
decades, its energy minister said on Friday, after a year of
surging global energy prices. 
    The amount of increase for the second quarter and beyond
will be decided after reviewing trends in global energy prices,
domestic inflation conditions and financial standings of public
enterprises, Minister Lee Chang-yang said.
    "The Korea Electric Power Corp (KEPCO) is expected to post a
deficit of more than 30 trillion won ($23.73 billion) this year,
after a 6 trillion won deficit last year, due to a rise in
global energy prices that had not been reflected in domestic
prices in a timely manner," Lee said. "Adjustments in
electricity and gas prices are inevitable for the sustainability
in energy supplies and to normalise the management of KEPCO and
Korea Gas Corporation."
    The increase of 13.1 won for the first quarter is the
biggest-ever quarterly increase since the current pricing system
began in 2021, according to the KEPCO, the state-run electricity
powerhouse. The rate of increase will be 9.5% on average, the
fastest quarterly rise since 1980. 
    The government decided to hold gas prices for the first
quarter, before reviewing an increase in the second quarter and
thereafter. 
($1 = 1,264.2900 won)
 (Reporting by Jihoon Lee. Editing by Gerry Doyle)
 ((jihoon.lee@thomsonreuters.com;))