Cash-strapped KEPCO mulls raising EV charging fees

[Photo by MK]

The Korea Electric Power Corporation (KEPCO), South Korea’s state-run utility, began efforts to overhaul its pricing policy, which may include a raise in electric vehicle (EV) charging fees. With a total deficit of 45 trillion won ($34.1 billion) and a debt-to-equity ratio exceeding 550 percent, the cash-strapped electricity supplier aims to increase profits from the EV charging sector, amid market expectations of a surge in EV units in the country to over 4.5 million units by 2030. But the move is likely to encounter potentially strong opposition from plug-in car owners.

In a recent decision, KEPCO launched a research study on strategies for maximizing revenues in the EV charging business. The company said the study aims to “formulate appropriate charging rates that balance profitability and public interest, mitigate risks associated with charging operations, and establish pricing strategies for the medium to long term.”

As per the latest data, the company runs over 10,000 public and apartment EV chargers across the country, with a charging rate of 347.2 won per kWh for quick chargers with a capacity of 100 kilowatts or more. Following a previous increase in July 2022, the charging rate has remained unchanged for a year and six months.