Electricity Rates Frozen in Q3... "Considering the Public Burden"

Fuel Cost Adjustment Unit Price Maintained at 5 Won per 1kWh as Current

Electricity rates for the third quarter (July to September) of this year have been frozen. This measure was taken considering the national burden.

Korea Electric Power Corporation (KEPCO) announced on the 21st that the fuel cost adjustment unit price (rate) for the third quarter of this year will be maintained at 5 won per 1 kWh (kilowatt-hour), the same as the current rate.

Electricity rates consist of a basic charge, electricity consumption charge (standard fuel cost), climate environment charge, and fuel cost adjustment charge. Since the fuel cost adjustment unit price is maintained at the current level and other electricity rate components, including the electricity consumption charge, are not adjusted, the overall electricity rates for the third quarter have been frozen.

The fuel cost adjustment unit price is calculated by multiplying a conversion factor by the variable fuel cost value, which is the difference between the actual fuel cost and the standard fuel cost, averaged over the previous three months (March to May).

During this period, due to the rise in fuel prices such as bituminous coal and liquefied natural gas (LNG), the actual fuel cost increased to 571.30 won per kilogram. Accordingly, the fuel cost adjustment unit price was initially calculated at 10.2 won per kWh. However, KEPCO explained that the fuel cost adjustment unit price was finalized at 5 won by applying the consumer protection cap (5 won/kWh).