KEPCO extends electricity rate hikes amid financial strain

(Yonhap)

South Korea’s electricity prices will remain the same until the end of 2024, but the government is still weighing a potential rate hike later in the year in response to the country’s state-owned utility’s financial difficulties.

The Korea Electric Power Corp (KEPCO) announced Monday that it had set the unit adjustment price for the fourth quarter of 2024 at 5 won per kilowatt-hour (kWh), the same as the current level, after approval from the Ministry of Trade, Industry and Energy.

Based on fuel price fluctuations over the past three months, KEPCO should have reduced the price to -5 won per kWh for the fourth quarter of the year. But MOTIE told the state-owned utility to keep the price at 5 won per kWh, citing the company’s prolonged financial strain.