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Kepco hikes industrial electricity rates by 9.7%, keeps household rates steady

Published: 23 Oct. 2024, 11:09

JIN EUN-SOO
[email protected]

Korea Electric Power Corporation Seoul headquarters [NEWS1]

The state-run Korea Electric Power Corporation (Kepco) said Wednesday it will raise electricity rates for industrial use while maintaining current rates for households, starting this week, as global energy price volatility and escalating financial strains continue.

Under the decision, electricity rates for industrial use will rise by an average of 9.7 percent on Thursday, while rates for households and small stores will remain unchanged.

"The adjustment reflects rising production costs, while taking inflation and the livelihoods of the people into consideration," Kepco said in a statement.

"It is also inevitable to raise the rates to maintain and repair essential infrastructure, and to build foundations for cutting-edge industries, including chips and AI," the company added.

The rate for large businesses will rise by 10.2 percent, and for small and medium-sized companies by 5.2 percent.

Kepco said that the decision will affect 1.7 percent of total users, who account for 53.2 percent of electricity demand.

The company posted a combined loss of 43 trillion won ($31.1 billion) from 2021 to 2023, as it had not been able to raise electricity bills sufficiently to cover high fuel costs during the Covid-19 pandemic and rising inflation.

Its debt totaled 202.9 trillion won as of June, up 440 billion won from the end of 2023.

"Kepco has been adjusting electricity rates in steps to address the accumulating losses and secure funds to invest in the power grid," the company said, adding that it will continue to implement self-rescue measures to restore its financial health.

BY JIN EUN-SOO, YONHAP [[email protected]]