The government will decide on electricity and gas rate hikes for the second quarter early next week with the decision having been delayed for some 40 days.

According to government and industry sources on Friday, the government and the ruling People Power Party will hold a meeting next Monday to reach a final decision on energy rates for the April to June period.

The move follows the Korea Electric Power Corporation(KEPCO) and the Korea Gas Corporation announcing self-rescue plans to improve their financial situations. KEPCO CEO Cheong Seung-il also announced his resignation amid growing calls for him to step down by ruling party lawmakers. 

In the meeting on Monday, officials will review the adequacy of the self-reform plans put forward by the two energy firms and then determine the rate hikes.

The increase is expected to be modest with a seven won rise per kilowatt-hour viewed as most likely. That would result in the monthly electricity bill for an average household of four increasing by two-thousand-440 won.

The price of gas is expected to rise about five-point-47 won per megajoule, similar to last year.