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.
- Rates were due to rise by 7.3 won per kWh under the fuel cost adjustment formula.
- KEPCO and its subsidiaries had a combined debt of 210.7 trillion won ($152.1 billion) as of the first half of this year.
SEOUL, Sept. 21 (Yonhap) -- State-run Korea Electric Power Corp. (KEPCO) announced on Monday that it will maintain electricity rates unchanged for the fourth quarter of 2026, despite facing increased raw material costs and significant financial challenges. The company has decided to keep the adjusted fuel cost, a crucial element in electricity pricing, at its maximum level of 5 won per kilowatt-hour (kWh) for the period of October to December.
This marks the 18th consecutive quarter that KEPCO has held the adjusted fuel cost at 5 won per kWh, a policy that has been in place since the third quarter of 2022. The adjusted fuel cost is determined quarterly and can fluctuate by up to plus or minus 5 won per kWh, based on the prices of energy sources like coal and liquefied natural gas (LNG) over the preceding three months. Under the standard fuel cost adjustment formula, electricity rates were projected to increase by 7.3 won per kWh in the fourth quarter.
The decision to freeze rates is anticipated to exacerbate KEPCO's financial difficulties. The company's financial strain began when it consistently supplied electricity at prices below its production costs, particularly during the period of surging global energy prices between 2021 and 2023, which followed Russia's invasion of Ukraine. As of the first half of 2026, KEPCO and its power-generating subsidiaries collectively held a debt of 210.7 trillion won (US$152.1 billion).