According to KEPCO on the 19th, consolidated sales in 2020 were about 600 billion won down from 5,917 trillion won in 2019. However, due to the decline in fuel prices, operating profit increased by 5,362.8 billion from a decrease of -1,2765 billion a year ago to a net profit of 4.86 trillion won.
The increase in operating profit is largely attributable to the reduction of 6 trillion won in fuel costs for power generation subsidiaries and electricity purchase costs for private power generation companies due to the continued decline in fuel prices such as oil prices.
Subsidiary fuel costs decreased by 3.5 trillion won compared to the previous year, and electricity purchase costs decreased by 2.5 trillion won compared to the previous year due to LNG and falling oil prices.
Last year’s sales revenue fell by 2.2%, down by 200 billion won, due to the re-proliferation of Corona 19 and consumption contraction due to prolonged rainy season. Other revenues also decreased by 400 billion won as the overseas construction sector was almost completed.
However, KEPCO and Electric Power Group companies saved about 470 billion won by making efforts to save about 37% of operating expenses, apart from fuel costs and power purchase costs, which are affected by international fuel price fluctuations.
Since 2015, the rate of increase in power supply costs for the last five years was 5.9%, and when this ratio was applied, an increase of about 1.15 trillion won was expected last year, but last year’s power supply cost growth rate was kept within 3.5%, restraining it to within an increase of about 680 billion won from the previous year. .
In addition, by reducing power supply costs, discovering new low-interest borrowers, and reinforcing the management of borrowings, it has also achieved an effect of reducing interest costs of 51.4 billion won compared to the previous year.
A KEPCO official said, “We will manage the rate of increase in electricity supply cost per 1kWh of sales volume of KEPCO and power group companies within 3% per year by 2024.” We are continuing to improve supply cost execution efficiency and improve profits.”
KEPCO formed a council for power supply cost management in the power generation sector, shared efficiency goals, periodically checked the performance, and jointly collaborated on efforts to reduce power supply costs of KEPCO and the entire power group companies through the Management Innovation Committee in which external experts participate. It plans to systematize the inspection of execution performance, such as monitoring.