Raising concerns about fatal blows to industry when electricity rates rise



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45 of 69 leading export items
Representative Han Moo-kyung points out: “If electricity rates go up, we will lose competitiveness in the world market.”

[투데이에너지 김병욱 기자] There is concern that the industry as a whole will take a fatal blow if electricity rates go up.

According to data obtained by Representative Moo-kyung Han of the National Assembly Small and Medium Enterprises Committee, the number of Korean items that occupied the number one market share in the world export market in 2019 was 69 items. energy-intensive industries, chemicals, and steel and non-ferrous metals accounted for 65% with 45 items.

The problem is that the sectors corresponding to 45 items, including 27 chemicals and 18 steels and non-ferrous metals, are energy intensive sectors, and even small fluctuations in electricity rates have an immediate impact on the entire industry.

According to the 2019 KEPCO statistics, “ Sales Power Trend by Manufacturing Industry ”, the petrochemical, primary metals and assembly sectors saw an increase of 68.2% compared to 2005.

The oil and chemical industries reached 33,994 GWh in 2005, but in 2019, 28,377 GWh increased to 62,371 GWh, an increase of 83.5%.

The primary metals industry increased 49.3% to 42,001 GWh from 28,128 GWh, and the metal assembly industry increased 70.5% to 9,231 GWh from 5,412 GWh.

On December 17 of last year, the government announced a plan to reorganize the electricity tariff system based on the fuel cost indexation system, which reflects fluctuations in the costs of fuel used for electricity production in electricity tariffs. , and began to take effect on January 1.

The industry predicted that if expectations for an economic recovery, such as corona vaccination, rise, the rise in oil prices will start in earnest.

When oil prices rise, electricity rates that fluctuate according to fuel costs are also unavoidable, so industrial electricity rates rise.

In addition, as the government’s rapid expansion of new and renewable energy promotes an aggravated increase in electricity rates, it is noted that the flagship industry will be damaged and eventually give up the number one position.

Representative Han Moo-kyung said: “In the case of the main export industries that consume a lot of electricity, the cost burden is expected to increase due to the reorganization of the electricity tariff system based on the cost-linking system of electricity. fuel”. an obvious situation that will lead to the fire, “he emphasized.

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