Korea Electric Power Corporation

KEPCO (CEO Seung-il Jeong) announced on May 15 (Mon) that it would raise electricity rates from May 16 by reflecting some of the accumulated rate increase factors, reducing the burden on consumers accordingly. The plan was also announced.

This electricity rate adjustment reflects some of the fuel cost increase in 2022 that was not reflected in the January rate adjustment, and was decided in consideration of consumer acceptance.

KEPCO recorded an operating loss of 32.7 trillion won, the largest ever in 2022, due to skyrocketing international fuel prices after 2021, followed by an operating loss of 6.2 trillion won in the first quarter of this year.

※ Cumulative deficit total of 44.7 trillion won (consolidated basis): (2021) △5.9 trillion won, (2022) △32.7 trillion won, ( 2023.1Q) △6.2 trillion won

This is because international fuel prices are on a stabilization trend, but are still at a higher level than normal, and there is a time lag between international fuel prices and domestic introduction prices.

The details of the electricity rate adjustment are as follows.

Incorporating some of the accumulated increase factors, the electricity rate is set at 8.0 won. While raising /kWh, it is planned to provide assistance to the vulnerable groups and sectors that feel relatively burdened by the rate increase to alleviate the burden of rate increase (refer to measures to reduce consumer burden).

< span>11.4 won/㎾h in the first quarter of 2023, an increase of 8.0 won/㎾h this time reflects a total of 19.4 won/㎾h of the increase in fuel costs in 2022.

This time The rate of increase in electricity rates is about 5.3% [1] compared to the current rate level, and an increase of 3020 won per month (including VAT and electricity infrastructure fund) is expected for a household of 4 using 332㎾h [2] on average per month.