Kepco to keep electricity rates frozen for Q3

The state-run Korea Electric Power Corporation (Kepco) said Monday it will keep electricity rates unchanged for the third quarter amid volatility in global energy prices.

The adjusted fuel cost, a key component of the country's electricity rates, will remain at the maximum level of 5 won (three-1,000s of a cent) per kilowatt-hour for the July to September period, Kepco said.

The company has maintained the adjusted fuel cost at 5 won since the third quarter of 2022.

The adjusted fuel cost is determined before each quarter within a range of plus or minus 5 won per kilowatt-hour, based on energy prices, such as coal and liquefied natural gas, over the previous three months.

Kepco said the government has told it that the current rate should be maintained, citing the company's financial situation.

The government has also asked the company to thoroughly implement measures to improve its financial health, it added.

Kepco's financial troubles began when it continued supplying electricity at prices below production costs even as global energy prices surged between 2021 and 2023 due to Russia's invasion of Ukraine.

Yonhap