KEPCO keeps electricity rate frozen for Q2
The state-run Korea Electric Power Corp. said Friday it will freeze the adjusted fuel cost for the second quarter as part of efforts to improve its financial stability.
KEPCO said it will keep the adjusted unit fuel cost, a key part of the country's electricity rates, unchanged at 5 won per kilowatt-hour for the April-June period.
The company has maintained the adjusted unit fuel cost at 5 won since the third quarter of 2022.
For the second quarter, KEPCO initially had to decrease the cost to -4.2 won per kWh considering the decline of fuel prices over the past three months, but the industry ministry told the company to freeze the cost due to its financial pressure, according to the company.
KEPCO's total debt hit a record high of 205 trillion won ($139.6 billion) last year, according to its regulatory filing, due to high interest payments on existing debt.
The company's financial woes began as it supplied electricity at below cost despite soaring global energy prices in 2021-2023 triggered by the Russia-Ukraine war.
In October, KEPCO raised the electricity rate for industrial use by 9.7 percent, while those for households and small stores remained unchanged as part of efforts to lower the burden on people's livelihood. (Yonhap)
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