South Korea is considering energy vouchers and boosting coal, nuclear power

The government of South Korea said that it is looking at providing energy vouchers for vulnerable households to help'subsidise' them if global fuel prices rise in the wake the Middle East Crisis, which will increase electricity costs.

In the event of high oil prices and disruptions in LNG supplies, Asia's 4th largest?economy? is also planning to increase nuclear and coal-fired energy generation.

Kim Jung-kwan, Minister of Industry, said that the government would take "all necessary measures" to reduce the burden on people. These include stabilising the energy supply and demand and managing prices.

According to Korea International Trade Association, South Korea imports about 70% of its oil, and 20% of its gas from the Middle East.

Climate?and Energy Ministry announced this week that it will accelerate the restart of nuclear units under maintenance. Two units are expected to be back online by March, and four others by mid-May.

If LNG supply shortages occur, the coal-fired output can be increased during periods where fine dust has a low impact on air pollution.

A government official said that the government is considering increasing its budget for energy vouchers to help 'low-income families and other vulnerable groups.

South Korea has already set aside a budget for energy vouchers of about 500 billion won (about $335.93 million) valid until May last year, and another 500 billion won for this year.

Officials said that the government will monitor the funds, and may consider additional assistance.

South Korea has begun capping the price of domestic fuels to combat rising energy costs. ($1 = 1,488.4000 won) (Reporting and editing by Ed Davies).

(source: Reuters)