Electricity Bill Freeze... KEPCO Reports Operating Loss of 764.8 Billion Won in Q2

Turned to Deficit in the First Half of the Year

Despite 3.8% Increase in Sales Volume,
Sales Revenue Increased by Only 1% Due to Decline in Selling Price

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] Korea Electric Power Corporation (KEPCO) recorded an operating loss exceeding 760 billion KRW in the second quarter of this year.

On the 13th, KEPCO announced that its second-quarter operating loss was provisionally estimated at 764.8 billion KRW. The operating profit decreased by 1.1546 trillion KRW compared to the same period last year (389.8 billion KRW), turning into a deficit. KEPCO had maintained continuous profits from the first quarter of last year through the first quarter of this year but returned to a deficit in the second quarter.

Due to the large-scale deficit in the second quarter, the operating profit for the first half of this year recorded -193.2 billion KRW, a decrease of 1.0136 trillion KRW compared to the same period last year. A KEPCO official explained, "While sales increased by 428.5 billion KRW due to increased electricity sales volume, operating expenses increased by 1.4421 trillion KRW due to rising fuel costs and power purchase costs."

Electricity sales volume in the first half of the year was 262 TWh, a 3.8% increase compared to the same period last year. However, the selling price dropped by 2.6% from 107.75 KRW/kWh to 104.94 KRW/kWh, resulting in sales revenue increasing only by 1.0% (27.65 billion KRW) from 26.6 trillion KRW to 26.8765 trillion KRW. This was because the government froze electricity rates despite rising fuel costs to stabilize the lives of citizens suffering from the prolonged COVID-19 pandemic.

A KEPCO official stated, "As the impact of rising fuel prices is expected to be fully reflected in the future, KEPCO and its power group companies will suppress the unit electricity supply cost within 3% annually through intensive management efficiency. We will strengthen efforts to create new revenue and improve profits by expanding overseas renewable energy projects, developing new energy business models, intelligentizing the entire power industry value chain and ecosystem based on AI and power big data, establishing and operating optimal transmission and distribution systems, and developing core carbon-neutral technologies, thereby laying the foundation for sustainable growth."

This content was produced with the assistance of AI translation services.