KEPCO to keep electricity rates frozen for Q3

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.

KEPCO's financial struggles originated from its practice of supplying electricity at prices below production costs, particularly during the period of surging global energy prices between 2021 and 2023, exacerbated by Russia's invasion of Ukraine. The company currently carries a debt of 206 trillion won, incurring approximately 11.4 billion won in daily interest payments.

Despite calculations suggesting that electricity rates adjusted for fuel costs should be lowered by 3.4 won per kWh, the government has requested that the current rate be maintained, citing KEPCO's overall financial condition. Authorities have also urged the company to implement comprehensive measures to improve its financial health.