SEOUL — Kim Dong-cheol, the president of state-run Korea Electric Power Corp. (KEPCO), announced on Thursday that the company will seek a gradual increase in electricity prices based on production costs. This comes amid ongoing uncertainties in the global energy market.
As per Yonhap News Agency, the company has faced challenges due to the global insecurity in energy supply, as well as the lingering crisis in Russia and Ukraine and production cuts by the Organization of the Petroleum Exporting Countries. Last year, KEPCO reported a record-high operating loss of 32.63 trillion won (US$24.1 billion), which has spurred this latest decision to adjust electricity rates. The rates were raised by 5.3 percent on-year for the second quarter, following a 13.1 won increase per kWh in the first quarter. KEPCO aims for a 51.6 won rate increase this year and plans to sell assets and cut welfare programs to improve its financial health.