"We earnestly ask the public to cooperate in saving electricity and reducing power consumption." At the latest government emergency economic response meeting on the Middle East crisis, South Korean President Lee Jae-myung made a direct appeal.
Amid ongoing conflict in the Middle East and turbulence in global energy markets, Lee Jae-myung publicly called on the entire nation on Thursday to participate in energy-saving efforts, while also promising not to adjust the current electricity rates.
"The government will try its best to maintain the current electricity rates," he said, adding, "The electricity sector is monopolized by the Korea Electric Power Corporation (KEPCO), and under this system, the government holds full responsibility."
It was explained that the state-controlled Korea Electric Power Corporation is South Korea's largest power company, virtually monopolizing the nation's power transmission, distribution, and retail businesses, and is responsible for about 70% of South Korea’s electricity supply.
For many years, this power giant has been deeply mired in a debt crisis. Despite soaring fuel procurement costs, it has continued to supply electricity at prices below cost to stabilize domestic inflation, without raising electricity tariffs.
Lee Jae-myung revealed that Korea Electric Power Corporation’s current debt has reached as much as 200 trillion won (about 53 million ringgit).
He stated that if the existing electricity rate is maintained, it could very likely lead to excessive power consumption, further increasing the financial burden on KEPCO and worsening its loss situation. Therefore, he earnestly asks citizens to save electricity.
"This not only causes losses to government finances, but could also result in energy overconsumption or cause the public to lose awareness of the need to save energy," Lee Jae-myung said. "In view of the current severe situation, I ask the public to keep this in mind and actively participate in energy-saving actions, especially regarding reducing electricity usage."
To cope with sharp fluctuations in international oil prices, the South Korean government will also implement a new round of fuel price ceiling measures starting Friday. Lee Jae-myung said, "We sincerely ask all gas stations to actively cooperate and set reasonable prices in accordance with the original intent of the fuel price cap system."