Key facts
- KEPCO will freeze electricity rates for the fourth quarter.
- The adjusted fuel cost will remain at the maximum of 5 won per kWh.
- This freeze is despite higher raw material prices and KEPCO's financial difficulties.
KEPCO to keep electricity rates frozen for Q4 despite higher costs
IN SHORT
State-run Korea Electric Power Corp. (KEPCO) will maintain electricity rates unchanged for the fourth quarter, despite rising raw material costs and its own financial struggles. The adjusted fuel cost will remain at the maximum of 5 won per kilowatt-hour (kWh) from October to December, a level held for 18 consecutive quarters. This decision is expected to further strain KEPCO's finances, which have been impacted by selling electricity below production costs.
Key Numbers
5 won per kWhfrozen adjusted fuel cost for Q4
18consecutive quarters adjusted fuel cost held at 5 won per kWh
7.3 won per kWhexpected rate increase under fuel cost adjustment formula
210.7 trillion woncombined debt of KEPCO and subsidiaries as of H1 2026
152.1 billioncombined debt of KEPCO and subsidiaries in US dollars as of H1 2026
Who's Involved
KEPCO
state-run Korea Electric Power Corp. that will keep electricity rates frozen
↳ Why This Matters
KEPCO's decision to freeze electricity rates despite rising costs and its own substantial debt raises concerns about the company's financial stability and its ability to meet future energy demands. This situation could lead to further financial strain on the state-run utility, potentially impacting energy supply and requiring government intervention.