“Electricity and Gas Rates for Second Quarter Delayed Amidst Calls for Additional Measures by KEPCO and KOGAS”

With the announcement of electricity and gas rates for the second quarter being delayed, an announcement within this month is also expected to be difficult. The ruling party is strongly demanding the announcement of additional self-rescue measures by KEPCO and KOGAS, but it seems that it will take some time before additional self-rescue measures are prepared. However, the government judged that the collection of opinions on electricity and gas rate hikes had been sufficiently progressed, and it was reported that the next Democratic Party-governmental meeting was not yet planned. According to related ministries on the 23rd, the government plans to announce electricity and gas rates for the second quarter at the same time as KEPCO and Gas Corporation announce additional self-rescue measures. After the announcement of additional self-rescue measures by KEPCO and Gas Corporation, we are reviewing a plan to announce electricity and gas rates simultaneously with the announcement.

KEPCO and Gas Corporation are pushing for self-rescue measures worth 28 trillion won each by 14 trillion won by 2026, but the ruling party believes that it is not enough.

The power of the people strongly criticized KEPCO and Gas Corporation at the ‘Democratic Party Government Meeting for Electricity and Gas Rates’ held at the National Assembly in Yeouido, Seoul on the 20th.

Park Dae-cheol, chairman of the People’s Power Policy Committee, said, “Is it time to be in the swamp of moral hazard and just drive public opinion to scare the people in the way that if we don’t raise the rate, we will all die together?” “I have urged KEPCO and KOGAS several times to make efforts to reduce restructuring, but it is regrettable that there is still no response.”

In fact, the announcement of an electricity and gas rate hike in the second quarter suggested difficulties until additional self-rescue measures were prepared.

In response, KEPCO and KOGAS are reviewing additional high-intensity self-rescue measures such as returning wage increases and performance bonuses. In this regard, KEPCO CEO Jeong Seung-il issued a statement on the 21st and said, “With a heartbreaking heart, we will come up with and announce additional measures as soon as possible, including labor cost reduction, organizational manpower innovation, support for the energy vulnerable, and measures to improve public convenience.”

However, it is not easy to come up with additional self-rescue measures within this month. Even if employees’ wage increases or incentives are returned, the actual financial improvement effect is not significant because the ratio of labor costs to operating expenses is not high. There are not many options to add to the situation where self-rescue measures are already being implemented, such as selling disused assets, reducing the number of employees, and reducing expenses.

An official from the Ministry of Trade, Industry and Energy said regarding the preparation of additional self-rescue measures for energy public companies, “it takes time because public companies’ personnel costs and expenses are not issues that can be promoted hastily as the decision-making process is complicated and can be legally problematic.” We are preparing to quickly formalize what we can offer.”

However, the government believes that opinions from all walks of life related to electricity and gas rates in the second quarter have been fully converged. The party and the government held meetings with the Democratic Party and the Government twice in a month to hear the opinions of public energy companies such as KEPCO and KOGAS, consumer groups and small business groups, academia, energy supply companies, and energy demand companies. It is known that attendees generally formed a consensus on the need for normalization of electricity and gas rates. As of now, it is explained that the next meeting of the Democratic Party and Government is not planned.

[저작권자 @머니투데이, 무단전재 및 재배포 금지]