Korea Electric Power Holds Second-Quarter Electricity Rates Steady

Deep News03-23

Korea Electric Power (KEPCO) announced on Monday that electricity rates for the second quarter will remain unchanged.

The company stated that the adjusted unit fuel cost, a key component of electricity pricing in South Korea, will stay at the maximum level of 5 won per kilowatt-hour for the period from April to June.

KEPCO has maintained the adjusted unit fuel cost at 5 won per kilowatt-hour since the third quarter of 2022.

The adjusted unit fuel cost is determined before the start of each quarter based on energy prices, such as coal and liquefied natural gas, from the preceding three months, with a fluctuation limit of 5 won per kilowatt-hour.

The company explained, "Given KEPCO's financial condition and the significant expenses from past unadjusted fuel costs, the government has instructed us to maintain the current price of 5 won per kilowatt-hour for the second quarter." KEPCO also noted that the government has urged it to continue efforts toward achieving management normalization.

In 2025, KEPCO reported a net profit of 8.73 trillion won (approximately $5.79 billion), an increase of over 141% compared to the previous year, attributable to the company's ongoing initiatives to improve its financial health.

KEPCO's financial difficulties began between 2021 and 2023, a period marked by soaring global energy prices during the Russia-Ukraine conflict, while the company continued to supply electricity at prices below production costs.

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