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Lee Urges Energy Conservation Amid Middle East War, Rules Out Power Price Hike

South Korean President Lee Jae Myung has called for national cooperation on energy conservation, citing disruptions from the prolonged Middle East conflict. He pledged to maintain current electricity prices despite warning of mounting losses for the state power utility, KEPCO. Lee sternly warned that unfair profiteering through collusion or hoarding during the crisis would not be tolerated. He also instructed officials to prepare a supplementary budget to mitigate the broader economic impact of the prolonged war.

Key Points: S.Korea's Lee Pledges No Electricity Price Rise, Urges Energy Saving

  • Urges cooperation on energy-saving
  • Pledges no electricity price hike
  • Warns against profiteering during crisis
  • Directs public sector to adopt vehicle rotation
  • Orders prep of supplementary budget
2 min read

Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices

President Lee Jae Myung urges national energy-saving cooperation amid Middle East war disruptions but pledges no change to electricity prices for now.

"Taking advantage of a national crisis to seek unfair profits... will not be tolerated - Lee Jae Myung"

Seoul, March 26

President Lee Jae Myung on Thursday urged the nation to cooperate on energy-saving efforts as the prolonged war in the Middle East has disrupted global energy markets, but pledged no change in electricity prices.

Lee made the remarks during an emergency economic response meeting, as the government is set to impose another round of a fuel price cap to help protect the nation's economy from impacts from the US-Israel war with Iran, reports Yonhap news agency.

"(I) urge gas stations to actively cooperate in setting prices in line with the intended purpose of the oil price cap system," Lee said.

"Taking advantage of a national crisis to seek unfair profits through practices such as collusion and hoarding will not be tolerated and the government will continue to respond strictly under a zero-tolerance principle," Lee said.

Lee said the government will not raise electricity bills for now, but emphasised the need to conserve electricity, which is supplied by the state-run Korea Electric Power Corp. (KEPCO).

"The government does not plan to adjust electricity rates for now, but keeping them at the current level could significantly widen KEPCO's losses," Lee said.

He warned that greater reliance on electricity over petroleum-based products could further deepen KEPCO's financial burden and ultimately add pressure on government finances.

KEPCO has accumulated about 206 trillion won (US$136.9 billion) in debt after supplying electricity below production costs, even as global energy prices surged between 2021 and 2023 following the Russia-Ukraine War.

As part of an energy-saving campaign, Lee urged the public sector to actively adopt a five-day vehicle license plate rotation system and encouraged citizens to use public transportation.

He also instructed officials to draw up a detailed supplementary budget to prepare for the broader economic impact of a prolonged conflict, as the ruling Democratic Party plans to submit the extra budget bill to the National Assembly next Tuesday.

- IANS

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Reader Comments

R
Rohit P
This is a global issue affecting everyone. In India, we also face similar challenges with rising fuel costs and discom debts. The call for public cooperation on saving energy is crucial. We should all do our bit, like using public transport more often. 🚌
A
Aman W
While the intention to protect citizens from price hikes is good, the warning about the power company's losses is very real. Postponing the problem just kicks the can down the road. A small, gradual adjustment might be better than a huge shock later.
S
Sarah B
Interesting to see another country grappling with energy security. The five-day vehicle rotation system is a good idea to reduce fuel consumption. Maybe Indian cities with severe pollution could learn from such measures during crises.
V
Vikram M
The zero-tolerance warning against hoarding and collusion is the most important part! 🚫 During any crisis in India, we see black marketing and artificial price hikes. Strict action is the only way to protect consumers. Hope our authorities are watching.
K
Karthik V
$137 billion in debt for the power company is an astronomical figure. It shows how deeply the Ukraine war and now Middle East tensions disrupt everything. This is why energy independence and renewables are so critical for nations like ours.

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