Key facts
- KEPCO will keep electricity rates unchanged for the third quarter.
- The adjusted fuel cost will remain at the maximum of 5 won per kWh.
- This rate has been held constant since the third quarter of 2022.
- KEPCO's financial difficulties stem from supplying electricity below production costs during a period of surging global energy prices.
The state-run Korea Electric Power Corp. (KEPCO) announced it will keep electricity rates unchanged for the third quarter, maintaining the adjusted fuel cost at the maximum level of 5 won per kilowatt-hour (kWh). This decision comes despite factors that would typically lead to a rate reduction, as KEPCO continues to grapple with significant financial troubles.
The adjusted fuel cost, a crucial element in determining electricity rates, has been held at 5 won per kWh since the third quarter of 2022. This cost is adjusted quarterly based on energy prices like coal and liquefied natural gas (LNG) from the preceding three months, with a permissible range of plus or minus 5 won per kWh.