A presidential panel suggested Monday that South Korea further raise electricity rates, saying they are too low for a country that relies on imports for most of its energy needs.

The suggestion, along with a hike in tap water charges, was among the 10 major tasks the Presidential Committee on Green Growth put forward to make South Korea a global “green power” during a reporting session to President Lee Myung-bak.

The committee said that South Korea has had a policy of setting electricity price artificially low, though the resource-poor country depends on overseas sources for 96.5 percent of its energy needs.

That, coupled with sharp rises in fuel charges, has led to waste of electricity, it said.

Last month, South Korea raised power rates by an average of 4 percent.

Still, the price is too low compared with other advanced countries, the committee said.

The committee also said that tap water charges are also too low, only 78.5 percent of the production cost, and need to be raised so as to use the proceeds to improve outdated production facilities.

Nearly half of the country’s 503 water treatment facilities are more than 20 years old, and some 640 million tons of tap water worth 496.1 billion won (US$455 million) leaked from the facilities in 2010, the committee said. (Yonhap News)