KEPCO to keep electricity rates frozen for Q3 amid financial troubles

Electric meters are seen on a building in Seoul, Sept. 22, 2025. Newsis

The state-run Korea Electric Power Corp. (KEPCO) said Monday it will keep electricity rates unchanged for the third quarter, despite factors pointing to a cut, amid its lingering financial troubles.

The adjusted fuel cost, a key component of the country's electricity rates, will remain at the maximum level of 5 won per kilowatt-hour (kWh) for the July-September period, KEPCO said.

The company has maintained the adjusted fuel cost at 5 won since the third quarter of 2022.

The adjusted fuel cost is determined before each quarter within a range of plus or minus 5 won per kWh, based on energy prices, such as coal and liquefied natural gas (LNG), over the previous three months.

The KEPCO report showed the electricity rates adjusted for fuel costs were supposed to be lowered by 3.4 won per kWh, with the government noting the current rate should be maintained, citing the company's overall financial situation.

The government has also asked the company to thoroughly implement measures to improve its financial health, it added.

KEPCO's financial troubles began when it continued supplying electricity at prices below production costs even as global energy prices surged between 2021 and 2023 due to Russia's invasion of Ukraine.

The company currently holds 206 trillion won in debt, paying around 11.4 billion won in interest every day.