The South Korean government plans to support vulnerable households through energy vouchers and increase coal and nuclear energy production in response to rising electricity costs caused by global fuel price surges following the Middle East crisis.
SEOUL — South Korea is contemplating the introduction of additional energy vouchers to aid vulnerable households as rising global fuel prices, exacerbated by the Middle East crisis, threaten to increase domestic electricity costs. The government announced these considerations on Friday alongside plans to boost nuclear and coal-fired power generation to mitigate potential energy supply disruptions.
Kim Jung-kwan, Industry Minister, emphasized the government’s commitment to minimizing the financial burden on the populace by stabilizing energy supply and demand, managing prices, and providing support to vulnerable groups. South Korea heavily depends on energy imports, with about 70% of its oil and 20% of liquefied natural gas (LNG) sourced from the Middle East.
To lessen reliance on LNG, the Climate and Energy Ministry intends to expedite the restart of nuclear reactors under maintenance, expecting two units to be operational by March and four more by mid-May. Additionally, coal-fired power plants may increase output flexibly when air quality concerns are minimal, especially if LNG supplies face shortages.
Currently, South Korea has a yearly energy voucher budget in place for low-income and vulnerable populations, with approximately 500 billion won allocated last year and an equivalent budget for this year. The government may increase these funds through a supplementary budget under development.
Domestic fuel prices have been capped at a wholesale maximum of 1,724 won per liter for gasoline to alleviate the impact of rising costs. Nevertheless, affected groups like truck drivers express concern over ongoing fuel expense pressures despite government support.
This multifaceted approach reflects South Korea’s strategy to secure stable energy supplies and protect consumers amid ongoing global uncertainties in fuel markets.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/world/979961/south-korea-says-it-s-considering-energy-vouchers-boosting-coal-and-nuclear-power/story/