KEPCO Announces Electricity Tariffs to Remain Unchanged for Q3

Deep News06-22

Korea Electric Power Corp. has announced it will keep electricity rates steady for the third quarter, despite significant fluctuations in global energy prices.

The company stated that the adjusted fuel cost, a key component of South Korea's electricity tariff, will be maintained at its ceiling of 5 won per kilowatt-hour for the period from July to September.

This level of 5 won per kilowatt-hour for the adjusted fuel cost has been in place since the third quarter of 2022.

The adjusted fuel cost is determined before the start of each quarter, with a permissible fluctuation range of plus or minus 5 won per kilowatt-hour. This adjustment is based on the average prices of energy sources, such as coal and liquefied natural gas, over the preceding three months.

Korea Electric Power (KEPCO) indicated that the government has instructed it to maintain the current electricity tariffs, considering the company's financial situation.

The company further added that the government has requested it to thoroughly implement various measures aimed at improving its financial health.

Between 2021 and 2023, the utility faced severe financial strain as it supplied power at prices below production costs while global energy prices surged due to impacts from the Russia-Ukraine conflict.

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