Seoul: The state-run Korea Electric Power Corp. (KEPCO) is currently working on “normalizing” electricity bills, with potential plans for an additional rate hike next year, according to Industry Minister Ahn Duk-geun. This announcement follows KEPCO’s decision to increase electricity rates for industrial use while maintaining the current rates for households, a move influenced by global energy price fluctuations and the company’s financial difficulties.
According to Yonhap News Agency, KEPCO’s recent rate adjustment will impact 1.7 percent of total users, a group that consumes 53.2 percent of the country’s electricity. Ahn explained during a parliamentary audit that the rate increase, primarily affecting large corporations, was a necessary step in light of the ongoing challenges faced by the general public. Although no further hikes are expected this year, Ahn indicated that KEPCO is progressively working towards adjusting electricity rates overall.
KEPCO has reported significant financial losses, totaling
43 trillion won (approximately US$31.1 billion) from 2021 to 2023. These losses are attributed to the inability to sufficiently raise electricity rates amid high fuel costs, the economic impacts of the COVID-19 pandemic, and rising inflation.