Third-Quarter Electricity Rates Frozen; Fuel Adjustment Rate Maintained at +5 Won

Electricity rates for the third quarter (July to September), which will take effect starting next month, will remain frozen at current levels.

Korea Electric Power Corporation (KEPCO) announced that it will maintain the fuel cost adjustment rate for the third quarter at 5 won per kilowatt-hour (kWh), the same as the current level.

Electricity rates are composed of a base rate, a power usage rate, a climate and environment fee, and a fuel cost adjustment fee.

Among these, the "fuel cost adjustment rate" serves as the basis for the fuel cost adjustment fee, which reflects short-term fluctuations in energy prices.

The fuel cost adjustment rate is determined within a range of ±5 won per kWh, based on the comprehensive changes in fuel costs, such as bituminous coal and liquefied natural gas (LNG), over the past three months.

With the fuel cost adjustment fee frozen at its current level and no changes made to the base rate, power usage rate, or climate and environment fee, electricity rates for the third quarter will remain unchanged.

Although the fuel cost adjustment fee for the third quarter was originally calculated at -3.4 won per kWh, it was decided to maintain the maximum level of +5 won, taking into account KEPCO's financial situation.

The fuel cost adjustment rate has remained at the same level for 17 consecutive quarters since the third quarter of 2022.

KEPCO stated, "Regarding the third-quarter fuel cost adjustment rate, we were notified by the government to continue applying +5 won per kWh, the same as in the second quarter, considering KEPCO's financial status and the significant amount of unadjusted fuel cost fees." The company added, "We were also instructed to thoroughly implement self-rescue efforts for the normalization of KEPCO's management."

As of the end of June last year, KEPCO's total consolidated debt reached approximately 206.2 trillion won.

During the first three quarters of last year, KEPCO spent a total of 3.2794 trillion won on interest expenses alone, averaging about 12 billion won per day.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.