Transporter vehicles of the United States Forces Korea are stationed at Camp Casey in Dongducheon, Gyeonggi Province, March 4, as they prepare for Freedom Shield, a joint military exercise with South Korea. Yonhap

The United States Forces Korea (USFK) will see its utility bills soar, after the Korea Electric Power Corp. (KEPCO) raises electricity rates for them amid surging production costs, according to the state-run utility company, Tuesday.

The USFK has agreed with the Korean government to increase its power usage rate to 152.8 won ($0.11) per kilowatt-hour (kWh) this year, a 26.8 percent jump from last year's 120.5 won, KEPCO said.

The power usage rate is determined by the electricity fee and base rate. KEPCO raised its electricity fee for the USFK to 133.5 won, up by 26.9 percent from last year's 105.2 won per kWh, and its base rate to 7,830 won, up by 24.3 percent from 6,300 won per kilowatt.

To mitigate its record-high debt of 200 trillion won amid soaring global energy prices, the company raised power rates for all its electricity users twice in 2023.

"Our rate for the USFK for this year is an average of all different rates we charge for different purposes overall," a KEPCO official said.

The new rate for the USFK came after approval by the joint committee of the U.S.-Republic of Korea Status of Forces Agreement (SOFA). The committee has been determining the power rate for the USFK after checking how much KEPCO's rates were in the previous year and calculating their average.

The USFK said KEPCO's new rate is fair and reasonable.

"U.S. Forces Korea remains committed to being good ambassadors and neighbors with our host nation and has agreed with the ROK government to support the rate change in gas and electricity," USFK spokesperson Kim Eun-chong told The Korea Times.

"We're closely working with the ROK government agencies to determine the electrical rates applicable to the U.S. Armed Forces, taking into account revalidated electrical production costs. This process has been conducted in accordance with SOFA procedures with mutual respect."

Remaining conflicts over power usage rate

But there have been conflicts of interest between KEPCO and the USFK over the power usage rate. The company has been wanting to charge a "general rate," which is for non-specified purposes excluding all predetermined purposes such as education, industry and farming. The general rate is always the highest among other rates.

KEPCO has been insisting the USFK should be charged the generate rate, which is what it charges Korean military forces.

But the USFK has been rejecting the idea, saying they should instead be charged the average of all the rates KEPCO charges for specified and non-specified purposes.

The USFK cited a term from SOFA which states that the forces "should not be levied an unfair rate or condition compared to other utility users in the country" for utility costs related to electricity, gas, tap water, steam, heat or sewage treatment.

"The USFK, by mentioning a term from SOFA's chapter 6 clause 2, has been declining our request that the forces be subjected to the general rate," the KEPCO official said. "They said that 'other utility users' literally meant everyone and thus their rate should be based on the rates charged to everyone instead of non-specified purposes."