SEOUL: The Korea Electric Power Corporation (KEPCO) announced plans to increase electricity rates for industrial use by 9.7 percent on average, starting Thursday, while freezing rates for households. This decision comes in response to global energy price fluctuations and mounting financial pressures on the state-run utility company.
According to Yonhap News Agency, KEPCO’s rate adjustment reflects the rising production costs and the necessity to maintain essential infrastructure. The company emphasized the importance of supporting the development of advanced industries like semiconductors and artificial intelligence. Specifically, electricity rates for large businesses will increase by 10.2 percent, while those for small and medium-sized enterprises will see a 5.2 percent rise.
KEPCO noted that these changes will impact 1.7 percent of total users, who collectively account for 53.2 percent of electricity demand. The company’s financial struggles have been exacerbated by a combined loss of 43 trillion won (a
pproximately $31.1 billion) from 2021 to 2023, largely due to the inability to adequately raise electricity prices amidst high fuel costs, the COVID-19 pandemic, and inflation. As of June, KEPCO’s debt stood at 202.9 trillion won, marking an increase of 440 billion won since the end of 2023.
In light of these challenges, KEPCO stated it has been implementing phased adjustments to electricity rates to address its accumulating losses and to secure necessary investments for the power grid. The company also committed to continuing self-rescue measures aimed at restoring its financial stability.