KEPCO to freeze fourth-quarter electricity rates

Korea Electric Power Corporation (KEPCO) has announced that electricity rates for the fourth quarter (October–December) will remain frozen at current levels. The company decided to maintain the fuel cost adjustment unit price at +5 won per kWh, the maximum allowable limit.

This decision comes despite KEPCO facing significant financial pressure, with total debt exceeding 200 trillion won. While the company reported an operating profit in the first half of the year, the high cost of fuel and interest burdens remain substantial. The freeze is interpreted as an effort to mitigate the economic burden on households and small business owners amidst volatile international energy prices.

However, experts and legislative analysts have raised concerns regarding the long-term sustainability of this policy. The gap between wholesale electricity market prices (SMP) and retail rates continues to widen, as SMP has risen significantly due to global energy supply instabilities. There are warnings that delaying rate normalization may lead to increased financial burdens for future consumers.