The reason why the electricity price in South Korea is half the price of France, the nuclear power plant, is cheap

Kim Jong Soo's energy and taxes and contributions included in the global charge also play a role in the efficiency of power transmission and distribution equipment due to the small land area of ​​France. Even if you don't get out of your wallet right away, it will be a burden to the people at the end.

South Korea's household electricity prices are the lowest among the Organization for Economic Co-operation and Development ( OECD). Mexico, the oil-producing country, is the only country that is cheaper than South Korea based on the 2019 market exchange rate. South Korea, which costs $ 102.4 per megawatt hour, is 59% of the OECD average ($ 172.8), 79% of the United States ($ 130.4), 51% of France ($ 199.1), and 40% of Japan ($ 253.5). It is 31% of Germany ($ 333.9). How to use electricity much cheaper than Japan, which is an energy importer in a similar position to South Korea, the United States, which mine and use cheap shale gas, and France, which has the highest proportion of nuclear power in the world. Is it possible? One of the reasons why Korea's electricity prices are low is that Korea Electric Power has a high proportion of nuclear power and coal power generation, which have relatively low unit prices. Last year, South Korea's nuclear and coal power generation ratio was 64.3%. It is nearly twice as large as other major countries such as the United States (38.6%), Japan (33.5%) and Germany (35%). However, this explanation does not unravel the mystery that South Korea's electricity prices are cheaper than those of France, the nuclear power plant. In France, the ratio of nuclear power generation, which costs a little more than coal power generation, is 67.2%, which is more than double that of South Korea. Nevertheless, household electricity prices are twice as high as in South Korea. KEPCO also cites high operational efficiency of power transmission and distribution equipment as another reason. It is said that because the country is small, the customer density is high, and the power transmission and distribution costs per unit of power transmission and distribution equipment are relatively low. According to the current status of power transmission and distribution equipment operations in major countries as of 2016, which was surveyed by South Korea, the amount of power transmitted and distributed per kilometer of transmission lines in South Korea was 1028 MW, Japan (229 MW), and the United States (346 MW). Time), France (334 MW), Germany (293 MW), etc., recorded 3 to 4.5 times the level of major countries. The power transmission and distribution loss rate, which disappears when the electricity produced at the power plant reaches the receiving destination, is 3.6% in South Korea, Japan (4.7%), the United States (5.5%), France (7.5%), and Germany (6.1%). Significantly lower. The reason why Korea Electric Power Corp. claims the high ratio of nuclear power plants and the low electricity prices next to the operational efficiency of power transmission and distribution facilities is the low taxes and contributions. Compared to other countries with lower electricity taxes and higher proportions of renewable energy, the burden associated with energy conversion is lower. Although it is the last in the order that Korea Electric Power explains, if you look closely, you can see that low taxes and contributions are the important secrets of Korea's cheap electricity prices. Most of the questions about why South Korea's electricity bill is half that of France, the nuclear power plant, are solved by this. As of 2017, the tax and contribution included in the household electricity bill in France was 79 won (about 7.6 yen) per kilowatt hour, accounting for 36% of the electricity bill. Japan was 57.1 won (about 5.5 yen) at 28.8%, Germany was 210.2 won (about 20.2 yen) at 54%, and the United States was 27.4 won (about 2.6 yen) at 12.7%. On the other hand, the tax and contribution included in the electricity bill in South Korea that year was only 15.1 won (about 1.5 yen), which is 12.1% of the bill. It is one-fifth that of France and about one-fourth that of Japan. In addition to this, for policy purposes such as stabilizing the common economy and protecting farmers and fishermen, there is also a usage-based rate system that charges lower than the cost for housing and agriculture, and various welfare and special discount systems in South Korea. This is one of the factors that keep the electricity bill low. An official of Korea Electric Power Corporation said, "The difference in the price depending on the usage of electricity is extremely limited overseas, and most of the electricity price of the vulnerable class is supported by the government's financial resources, and a discount system for specific industries etc. Is not provided. " After all, such an explanation leads to the natural conclusion that the low electricity price in South Korea is the result of policy making, regardless of cost, demand and supply. The Ordinance for Enforcement of the Law Concerning Price Stability sets utility charges such as electricity charges at a level that compensates for the total cost, which is the sum of the appropriate cost and the appropriate investment cost of the service provider. However, this provision is not adhered to. As a result, Korea Electric Power's books have accumulated 137 trillion won (about 13 trillion yen) in consolidated debt by the first half of this year. Korea Electric Power supplies electricity at a lower cost than the cost price, and the cost of supplying electricity, which has not been sufficiently taken out of the people's wallets, remains there. It is said that the electricity charges paid directly by the people are not all of the electricity charges. Public corporation debt incurred to maintain low electricity prices will ultimately have to be covered by national taxes. Suppressing the rise in electricity prices is the reason why it can be compared to turning a bomb. According to foreign reports, fuel costs for power generation have risen this year, and electricity prices have been raised one after another in major overseas countries. In October, Spain increased by 37.9%, and Italy and Japan also increased by 29.8% and 15%, respectively. In the UK, it was raised by 9.2% in April and again 12% in October, six months later. France has announced a 4% price increase in February next year. Meanwhile, South Korea's electricity bill was only raised by 3 won (about 0.3 yen) per kilowatt hour for the first time in eight years since 2013 in October. 3 won is only 1.6% of the electricity charge per kilowatt hour (182.9 won, about 17.6 yen) applicable to a family of four who spend an average of 350 kilowatt hours per month. This addition of 3 won has recovered to its original state as the fuel cost interlocking system started this year and the price dropped by 3 won per kilowatt hour compared to the standard fuel cost (average fuel cost for one year from December 2019 to November 2020). Since it is a thing, it is not an increase in price when compared with the actual standard fuel cost. If we wanted to fully reflect the fluctuations in fuel costs, we had to raise the price by 13.8 won (about 1.3 yen) per kilowatt hour in October, but the maximum adjustment range per quarter due to the interlocking system is limited to 3 won. It has been done, and it could not be raised beyond that. The government has set up a linked system and set a range of adjustment limits for standard fuel costs in order to prevent consumer confusion due to sharp increases in tariffs. With the same standard fuel cost, it was not possible to make adjustments of up to 5 won (about 0.5 yen) per kilowatt hour. In order to raise the price beyond that, the standard fuel cost must be adjusted first, but the problem is that the periodic adjustment of the standard fuel cost is not regulated by the interlocking system and it is difficult to deal with it. It's a point. It's been almost a year since the fuel cost-linked system came into effect, but the purpose of the system to stabilize the “Temple field management” of Korea Electric Power Corporation, which is affected by fuel costs, and concentrate on energy conversion can be sprouted. I'm not here. The price rose for the first time in eight years in the fourth quarter due to the linked system, but Korea Electric Power is expected to record an operating loss in the high 4 trillion won (about 380 billion yen) range this year. This is because the price adjustment that accompanies the fuel cost interlocking system cannot keep up with the rising fuel cost of power generation. Whatever the outcome of next week's fuel cost adjustments for the first quarter of next year, South Korea's electricity prices are likely to remain at OECD lows next year. This is because raising the standard fuel cost of electricity prices does not seem to be controversial when the fiscal authorities are considering freezing utility prices because of pressure to raise prices. The government had to raise electricity prices in the second and third quarters according to the interlocking system, but it has been frozen by exercising retention rights due to price stability and other reasons. "If we maintain a system in which the government artificially determines electricity prices regardless of market prices, it is impossible to achieve carbon neutrality," said Sok Kwang-hoon, an expert advisor at the Energy Conversion Forum.