Korea Electric Power Corporation (KEPCO) has created an internal report stating that if electricity rates are not raised as promised by President-elect Yoon Seok-yeol, an additional loss of 16 trillion won is feared. The photo shows KEPCO’s Seoul headquarters in Jung-gu, Seoul on the 22nd. /Photo = Reporter Huh Moon-chan
KEPCO will announce the fuel cost adjustment unit price, which affects electricity rates, on its website at 8:00 am on the 29th. It was originally scheduled to be announced on the 21st, but was postponed due to ‘consultation with related ministries’ on the 20th, a day before.
Electricity rate consists of basic rate, electricity rate (standard fuel cost), fuel cost adjustment rate, climate environment rate, etc. The government has already decided to raise the standard fuel cost by 4.9 won per kilowatt-hour (KWh) twice in April and October for a total of 9.8 won, and the climate and environment rate by 2 won from April.
KEPCO is also reported to have submitted a plan to raise the fuel cost adjustment unit price by 3 won to the Ministry of Trade, Industry and Energy on the 16th.
There is a consensus within and outside the government and industry on the need to raise electricity rates. In particular, in the case of fuel cost adjustment, the fuel cost from December last year to February this year is reflected in the second quarter.
In terms of West Texas Intermediate (WTI) crude oil, the international oil price rose from $65.57 per barrel on December 1 last year to $95.72 per barrel on February 28 this year. As a result, the wholesale electricity price (SMP), at which KEPCO purchases electricity from power generation companies, has risen to 200 won per KWh.
However, with the election of then-People’s Power candidate Yoon Seok-yeol, who made one of his pledges to freeze the electricity rate in April during the presidential election, the prospects for an electricity rate hike began to differ. There was also an interpretation that KEPCO was trying to confirm the intentions of President-elect Yoon by delaying the announcement of the fuel cost adjustment rate.
On the 28th, as the transition committee put forward the position that it was “a matter for the current government to decide” about the April electricity rate hike, there was speculation that the current government and the next government would be ‘bombing’ ahead of the local elections in June. .
By Han Kyung-woo, reporter at Hankyung.com case@hankyung.com
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