Daegu said Thursday it will raise city gas consumer rates by an average of 0.53% starting next month, reflecting some increases in retail supply costs while minimizing the burden on consumers.
The basic rate will remain unchanged. Households using gas for cooking and heating will pay an average of 301 won more per month, or about 3,616 won more per year.
The city finalized the increase after commissioning a study from the Korea Economic Planning Research Institute to calculate appropriate retail supply costs, then submitting the findings to the Daegu Regional Economic Council's price subcommittee for review.
Key factors behind the rate increase include a decline in city gas sales volumes, adjustments for sales settlement figures and rising labor costs.
Daesung Energy, the city's gas supplier, had sought an increase of 0.43 won per megajoule, but Daegu settled on a rise of 0.1224 won per megajoule after weighing public utility price stability, the impact on residents and the company's investment conditions.
The final consumer rate combines a basic charge and a usage-based charge by purpose. The basic rate for residential use will be frozen.
Kim Tae-un, head of Daegu's future innovation and growth office, said the adjustment was "the result of minimizing the rate increase by comprehensively considering the livelihoods of ordinary residents, public price stability, and the safe and stable supply of city gas," adding that the city would continue working to ease the burden on residents.
kbj7653@heraldcorp.com
