People in South Korea will pay more for electricity,from the fourth quarter of 2021.
South Korea's state-run energy giant Korea Electric Power Corporation announced on Thursday that it's raising electricity fees from October.
This is the first time rates have been raised since November 2013.
An average four-member household is expected to pay a maximum of 1,50 won more or about 90 U.S. cents extra every month.
Under the new rates, a four-member household that uses an average of 350 kilowatt-hours will pay up to around 46 U.S. dollars a month.
KEPCO said the rate has been raised by 3 won or around point-zero-zero-two-five U.S. dollars per kilowatt-hour compared to the previous three quarters.
The hike reflects the uptick in global fuel prices as KEPCO has been suffering snowballing losses.
KEPCO's net losses amounted to roughly 570 million dollars during the April to June period, whereas the company recorded profits of around 170 million dollars during the same period a year earlier.
In a bid to improve profitability, KEPCO adopted a flexible rating system starting this year that revises its rates every three months depending on global fuel prices.
But despite higher operation costs, it has refrained from increasing rates during 2021 to ease the financial burden on households during the pandemic and rising inflation.
Experts say KEPCO's adjustment may put further inflationary pressure on the South Korean economy.
"The company inevitably has to take the rise in costs into consideration for electricity prices. There's a high chance that the hike in electricity rates will hurt consumer prices."
As of August, the country's consumer prices have been rising by roughly 2 percent for five straight months.
Eum Ji-young, Arirang News.