The state-run Korea Electric Power Corp. said Monday it will freeze electricity rates for the first quarter of next year despite recent declines in global energy prices as part of efforts to improve its financial stability.
KEPCO said it will keep the adjusted unit fuel cost, a key part of the country’s electricity rates, unchanged at the maximum level of 5 won per kilowatt-hour for the January-March period.
The company has maintained the adjusted unit fuel cost at 5 won since the third quarter of 2022.
The fuel cost adjustment unit price is determined before each quarter within a range of plus or minus 5 won per kWh based on energy prices, such as coal and liquefied natural gas, in the preceding three months.
Considering the recent fall in fuel prices, KEPCO initially had to lower the cost to -13 won per kWh.
“We were notified by the government to maintain the current rate of 5 won per kWh in the first quarter considering KEPCO’s financial situation and the significant amount of unadjusted fuel cost charges in the past,” the company explained, noting it has also been asked to continue its efforts to normalize its management.
KEPCO’s financial troubles started when it continued providing electricity at prices below production costs, even as global energy prices surged between 2021 and 2023 due to the Russia-Ukraine war.
As of end-June, the company’s accumulated debt stood at 206.2 trillion won ($139.2 billion). (Yonhap)
- Long-delayed destroyer project shifts to competitive bidding
- Korea cuts E-9 visa quota to 80,000 for 2026
- ARKO Selection begins 18th year, continues its role as platform for new works
- Jennie unveils hangul veil at MMA 2025, spotlighting Korean aesthetics through Le Je
- Closing out K-pop 2025: Stray Kids dominate, girl groups soar
Most Commented