(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Korea Electric Power Corporation (KEPCO) saw its shares drop sharply by 8.43% to close at 20,100 won on the 23rd, following the announcement of a freeze on electricity rates for the fourth quarter. The company confirmed that it will maintain the current fuel cost adjustment of 5 won per kilowatt-hour (kWh) after receiving approval from the Ministry of Trade, Industry and Energy.

In addition, KEPCO will not raise other charges such as basic fees, electricity usage fees, or climate and environmental fees, effectively freezing the electricity rates for the quarter.

The company has faced significant financial challenges, accumulating a deficit of approximately 43 trillion won from 2021 to 2023 due to selling electricity below cost amid the international energy crisis triggered by the Russia-Ukraine war.

As of the end of June, KEPCO's total consolidated debt stood at 202.99 trillion won, an increase of around 4.4 billion won compared to the end of the previous year.

Industry analysts have noted that any potential increase in electricity rates will be crucial in addressing KEPCO's financial difficulties.

 

 

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