Korean power distributor to freeze electricity prices for second quarter

Economy

Korean power distributor to freeze electricity prices for second quarter

Published: 21 Mar. 2024, 17:32

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

Watt-hour meters are installed on the exterior of a building in Seoul on Thursday. [YONHAP]

The state-run Korea Electric Power Corporation (Kepco), the country's sole power distributor, said Thursday it decided to freeze electricity prices for the second quarter amid the government's continued effort to battle inflation as the general election nears.

In 2023, Kepco raised the rates three times — by 13.1 won per kilowatt hour in the first quarter, 8 won in the second quarter and 10.6 won in the fourth quarter, which was confined to commercial electricity use.

Industry watchers, however, anticipate that Kepco will continue to face pressure to raise prices this year as its losses continue to mount.

From 2021 to 2023, Kepco's combined operating losses reached around 43 trillion won ($32.5 billion), attributed to the aftermath of Russia's invasion of Ukraine, which spurred volatility in global energy prices.

The losses came as the company had not been able to raise electricity bills enough to cover high fuel costs amid the Covid-19 pandemic and high inflation.

During his confirmation hearing in January, Industry Minister Ahn Duk-geun said the ministry would consider adjusting prices by taking into account people's financial burden, the exchange rate and global energy prices at "an appropriate time."

BY YONHAP, JIN EUN-SOO [jin.eunsoo@joongang.co.kr]