Electricity rates are going to rise by five Korean won per kilowatt hour in the third quarter.
Korea Electric Power Corporation, or KEPCO, announced the new prices Monday afternoon.
For an average household of four, this will mean their bill goes up by about 1-thousand 500 won or about 1 U.S. dollar and 20 cents.
That might not seem like much, but the hottest months of the year are yet to come.
And the increase will be felt more because other costs are going up so much with inflation.
But the increase is much lower than what KEPCO had suggested.
It said it needed a price hike of at least 33 won per kilowatt hour to make up for the money it's been losing because its prices were kept artificially low.
With energy prices rising globally, KEPCO, in the first quarter, posted a loss of more than 7.7 trillion won, or about six billion U.S. dollars.
So the government had to strike a balance as it tries to pull KEPCO out of a deficit and not put too much pressure on consumers.
Five won was where KEPCO and the government struck a deal.
The government also made some changes to the energy pricing rules.
Until now, electricity rates could go up by no more than three won per quarter.
Now, KEPCO can raise rates by as much as five won.
Still, with more summer heat on the way, KEPCO is giving bigger discounts to households on low incomes, so that they don't have to worry too much about using air conditioning.
Up to 3.5 million households could benefit from a discount of almost 10-thousand won a month about 7 dollars which could actually make their bills lower than they were in the second quarter.
But gas bills are going to rise next month, too.
The monthly gas bill for an average household will go up by around 2-thousand won or more than a dollar and half.
So combined, electricity and gas bills in July will be three to four dollars higher than they were in June.
Kim Yeon-seung, Arirang News.