KEPCO “Freeze electricity bills… to stabilize people’s lives”
Expected to increase in 3Q, including rising international oil prices
Policy/Public Enterprise | 2021-03-22 16:45:30
KEPCO frozen electricity bills for the second quarter. In the face of rising inflation pressures and increased household burden, it has pushed back the increase in electricity rates once again.
On the 22nd, KEPCO announced on its website that it set electricity rates for the second quarter at -3.0 won per kWh following the first quarter.
The energy industry has predicted that fuel costs will rise due to the recent rise in international oil prices, and electricity rates will increase in seven years after November 2013.
An official from KEPCO said, “The fuel cost adjustment unit price adjustment factor occurred due to the rise of international oil prices, but we received a reservation notice from the government in order to promote the stability of people’s lives, which are suffering from the prolonged Corona 19.”
In addition, KEPCO said that it was notified that it was necessary to keep the adjusted unit price in the second quarter the same as in the first quarter (-3 won/kWh) by using the unadjusted amount generated when the government decided on the fuel cost adjustment unit price in the second quarter.
KEPCO frozen electricity bills in the second quarter to stabilize people’s lives despite rising international oil prices.
The fuel non-interlocking system applied from this year is to reflect the fuel non-interlocking portion of electricity production, such as LNG, coal, and oil, in the electricity rate every three months. It is the value obtained by subtracting the average fuel cost of the previous three months from the standard fuel cost, which is the average fuel cost for the previous year.
However, the government has announced a policy to exercise the power to hold electricity rate hikes, which can prevent a rate increase in exceptional circumstances, as the rate increase can be large if fuel costs rise, such as a sharp increase in oil prices within a short period of time.
The energy industry predicts that the freeze in electricity rates is focused on the safety of people’s lives, but it is difficult to avoid raising electricity rates after the third quarter as international oil prices continue to rise.
On the other hand, when electricity rates were frozen, KEPCO’s stock price, which was 2475 on the 16th, returned all the gains on the day, and fell close to 5% to 23,000 won.
[CEO스코어데일리 / 천근영기자 / [email protected]]
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