KEPCO to keep electricity rates frozen for Q4 despite higher costs

South Korea's state-run power company, Korea Electric Power Corp. (KEPCO), announced on Monday that it will maintain electricity rates steady for the fourth quarter, despite facing higher raw material prices and financial challenges. The company has decided to keep the adjusted fuel cost at the maximum level of 5 won per kilowatt-hour (kWh) for the October-December period, maintaining this rate for the 18th consecutive quarter since the third quarter of 2022.

KEPCO's adjusted fuel cost is determined each quarter within a range of plus or minus 5 won per kWh, depending on energy prices such as coal and liquefied natural gas (LNG) from the preceding three months.

The decision to freeze electricity rates is expected to further compound KEPCO's financial difficulties. Prior to the global surge in energy prices in 2021, the company had been supplying electricity at rates below production costs following Russia's invasion of Ukraine. As of the first half of the current year, KEPCO and its power-generating subsidiaries collectively owed 210.7 trillion won (US$152.1 billion).