The government is expected to announce electricity rate hikes on Thursday that will go into effect in the second quarter.

Observers say that the government is likely to raise electricity prices by seven won per kilowatt hour(kWh), up about five percent from the current 146 won per kWh.

With the hike, an average household of four will see its monthly electricity bill increase by two-thousand-400 won, or about one dollar and 80 cents.

According to the government and the energy industry on Wednesday, the government decided to raise the prices for the second quarter and plans to make a related announcement on Thursday. 

Despite the snowballing deficit of the debt-ridden Korea Electric Power Corporation(KEPCO), the government has been delaying its decision on raising the electricity prices for over one month due to concerns about soaring prices and the public sentiment.

Market watchers say the increase will be lower than a hike of 13-point-one per kWh announced last December for the first quarter.