Falls in fuel prices such as international oil prices and bituminous coal prices… Impact of a decrease in fuel costs for power generation subsidiaries
Electricity market price decreased by 24% compared to the previous year, half of the highest price in 3 years
Operating expenses decreased by 9.9% despite a 2% increase in purchases of private power plants
[지앤이타임즈] KEPCO recorded an operating profit of 4.1 trillion won after a two-year deficit due to the fall in fuel prices of power generation subsidiaries.
KEPCO (CEO Kim Jong-gap) announced on the 19th that last year’s consolidated sales amounted to 58 trillion 569.3 billion won and operating profit turned to a profit of 4.86 trillion won compared to the previous year.
According to KEPCO, the electricity sales of last year’s sales amounted to 55.73 trillion won, a decrease of 208 billion won from the previous year due to the effects of Corona 19 and the prolonged rainy season.
In addition, with the completion of the overseas construction division process, other income decreased by KRW 3956 billion to KRW 2,838.3 billion, and total sales decreased by 1% year-on-year to KRW 58,569.3 billion.
Operating expenses recorded 54,483 billion won, down 9.9% from the previous year, or 5,966.4 billion won.
In the meantime, fuel costs for power generation subsidiaries decreased by 3,466.9 billion won from the previous year due to the decline in fuel prices such as international oil prices and bituminous coal prices.
In addition, last year’s electricity market price (SMP) was cut in half compared to three years ago due to the impact of LNG and oil prices, and the power purchase cost decreased by 2.5445 billion won from the previous year.
Last year’s SMP price was 68.9 won per kilowatt-hour, down 24% from the previous year.
In particular, compared to the highest SMP price in the last three years, 112.4 won per kilowatt-hour in March 2019, the average price in the fourth quarter of last year fell 50.4% to 55.8 won. It has decreased.
The increase in the purchase of nuclear power plants, which is cheaper than other fuels, is also a factor.
The nuclear power plant utilization rate rose 6.7% year-on-year to 75.3% due to the decrease in preventive maintenance days last year and the operation of Shin-Kori Unit 4 in August 2019.
In response, a KEPCO official said, “Operating performance is more affected by international fuel price fluctuations such as oil prices than nuclear power or coal utilization rates.” Explained.
Meanwhile, KEPCO and the Electric Power Group announced that they plan to reduce the cost of electricity supply by reorganizing the electricity rate system and improving management efficiency, minimizing the factors of increasing electricity rates and continuing to promote profit improvement efforts.
The plan is to manage the rate of increase in cost per unit of electricity supply per 1kWh of sales volume of KEPCO and electric power group companies within 3% per year by 2024.
To this end, since the beginning of this year, KEPCO has formed its own’Power Supply Cost TF’ and has been continuously pursuing improving the efficiency of power supply cost execution and improving profits by focusing on financial issues.
By expanding this to power generation companies, a consultative body for power group companies is formed to manage power supply costs in the power generation sector, and the performance is regularly checked by sharing the goal of efficiency improvement.
In addition, through the’Management Innovation Committee’ in which external experts participate, KEPCO and the entire power group companies are planning to jointly monitor efforts to reduce power supply costs, and to systematically check the execution performance.
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