South Korean officials announced that the country will increase electricity prices and decrease consumption taxes on liquefied natural gas (LNG), propane and kerosene, as part of a country-wide effort to avoid blackouts.
The ministries of energy and finance announced in a joint statement that the government controlled Korea Electric Power Corp. (KEPCO) will increase electricity prices by an average 5.4% starting on Thursday, with industrial users facing the largest increase.
The ministries also said they will submit legislation to parliament seeking to impose a new consumption tax on coal imports for power stations, which looks set to be implemented in 2014. This tax could indirectly increase electricity costs and encourage consumers to use alternative sources of energy, such as LNG.
The lower taxes on LNG, propane and kerosene are expected to take effect in 2014.
Edited from various sources by Katie Woodward