Low Cost Living
South Korea’s household electricity rates are 40 percent of Japan’s, making it cheaper compared to the G7 countries, according to a new report.
Japan’s Nikkei calculated the 2022 household electricity bills of the G7 countries based on International Energy Agency (IEA) statistics and found that Italy was the highest at 13,883 yen (US$95.46), the newspaper reported on Aug. 17.
Nikkei calculated the figure based on the average Japanese household’s monthly electricity usage of 260 kilowatt-hours (kWh).
Italy, which has no nuclear power plants and relies on liquefied natural gas (LNG) for about half of its electricity generation, was hit by rising energy prices, with its electricity charges jumping 40 percent from 2021.
The United Kingdom (12,942 yen) and Germany (11,921 yen), which also rely on LNG for 40 percent of their power generation, came in second and third. Fourth to seventh places were taken by Japan (8,993 yen), France (7,425 yen), the United States (5,168 yen), and Canada (4,269 yen). Japan also saw a 31 percent increase from 2021.
The reason for surges in electricity charges in Europe and Japan is that the international prices of LNG and coal used to fuel thermal power plants skyrocketed following Russia’s invasion of Ukraine.
On the other hand, electricity rates were relatively low in France, which relies on nuclear power for 70 percent of its electricity generation, the United States, which produces shale gas, and Canada, which relies on hydroelectricity to generate 60 percent of its power.
Korea was the lowest at 3,650 yen (about 36,000 won), only 40.6 percent of Japan’s. “Korea’s reliance on fossil fuels is similar to Japan’s, but the Korean government is the majority shareholder of KEPCO, making it difficult to raise electricity charges due to political factors,” the Nikkei analyzed.