The possibility of holding electricity rates steady in the first quarter of next year has increased. This is because Korea Electric Power Corporation decided to maintain the fuel cost adjustment unit price, a key factor in setting electricity rates, at its current level.
Korea Electric Power Corporation announced on the 23rd that it has set the fuel cost adjustment unit price at +5 won per kWh, the same as the current rate. Electricity rates typically consist of a basic charge, an electricity consumption charge, a climate and environmental charge, and a fuel cost adjustment charge. The fuel cost adjustment unit price, which is calculated based on the average prices of fuel such as bituminous coal, liquefied natural gas (LNG), and Brent crude oil over the three months preceding the relevant quarter, influences the fuel cost adjustment charge.
Korea Electric Power Corporation has been applying the maximum fuel cost adjustment unit price of +5 won since the third quarter of 2022. Although the fuel cost adjustment charge for the first quarter of next year was calculated at -5.1 won per kWh due to a decline in fuel prices, it decided to maintain +5 won, considering its substantial liability.
A Korea Electric Power Corporation official noted, "The government informed us that it would apply the fuel cost adjustment unit price for the first quarter of next year the same as the fourth quarter this year, considering the company's financial situation and significant unadjusted amounts of fuel cost adjustment charges," and added, "They instructed us to thoroughly implement self-help efforts for management normalization."