After 3 years, it became a surplus … KEPCO faces rising fuel costs



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◆ Public corporations noted by the regime ◆

Despite the increase in fuel costs, electricity bills are frozen in 2Q and electricity bills of around 54,000 won, which is the same level as in 1Q, are expected to be generated in 2Q11 for a household. for 4 people that uses 350kwh of electricity.

Although it was less upsetting for people, the concerns deepened from KEPCO’s point of view. There is growing concern that the ambitiously introduced fuel price index will prove virtually ineffective. Even if the specificity of this situation, called Corona 19, is partially admitted, it is difficult to predict why the decision to freeze will be made in the future.

At worst, it is noted that KEPCO’s basic idea of ​​establishing a stable business structure while flexibly adjusting electricity prices according to fluctuations in fuel costs may be upset. Comparison of the fuel cost adjustment unit price calculations announced by KEPCO on the 22nd for the first and second quarters shows an increase in fuel prices sufficient to increase electricity rates.

The fuel cost index is a system in which the price change is calculated every three months and reflected in the tariff based on customs clearance prices for LNG and coal announced by the Korean Customs Service. The change in the average fuel cost over one year (standard fuel cost) minus the average fuel cost of the previous three months (realized fuel cost) is the basis for calculating the rate. It is a structure in which electricity rates change according to the trend of international prices of raw materials.

KEPCO’s after-tax fuel price (realized fuel cost) from April to June was 113.61 won for bituminous coal, 508.97 won for LNG, and 442.64 won for British Columbia oil. In the first quarter of last year, fuel cost earnings for bituminous coal were 108.65 won, LNG 350.24 won, and BC oil 373.33 won. In particular, the rise in the prices of liquefied natural gas and petroleum was notable. Liquefied natural gas increased approximately 45.3%, almost half, and oil prices increased 18.6%.

The basis for deciding to freeze electricity rates despite rising fuel costs can be found in the fuel cost adjustment fee operating guidelines attached to the KEPCO Electricity Supply Agreement stipulating the cost index. fuel. In the “ Reserve for the imposition of adjustment rates in case of emergency ” of the guidelines, the Ministry of Commerce, Industry and Energy may temporarily suspend the application of the adjusted unit price for the stability of people’s lives and good operation of the national economy due to the possibility of electricity rates fluctuating significantly. In fact, if the government intervenes by making a justification at any time, it is a structure that can notify the fuel cost freeze. On the 19th, Vice Minister Kim Yong-beom of the Ministry of Strategy and Finance said at a meeting on inflationary relations: “We will stably manage utility bills in the second quarter to minimize the impact on consumer prices.” which increases the possibility. of freezing electricity bills. Of course, the freezing of electricity bills at this time is not expected to be an undue burden on KEPCO. This is because the fuel cost reduction effect was not fully reflected in the electricity bill due to the limited fluctuation of the adjusted unit price (± 3 won) in Q1.

A KEPCO official said: “The adjusted unit price calculated in the first quarter of the year when the oil price was so low was -10.5 won per 1kwh, but due to the ‘Cap’ rule it can only be added or Subtracting up to 3 won at a time compared to the previous price actually only dropped 3 won. “It was to offset the 2Q increase factor using the -7.5 won incurred here.” as it cut electricity bills less in the first quarter, so it is possible to freeze rates in the second quarter even if there is a factor increase.

The problem is the situation in the future. It has been proven that the government can withhold the increase in consideration of public sentiment with the freezing of electricity bills. Previously, KEPCO posted the worst deficit for a while due to the aftermath of the post-nuclear and carbon-free policy promoted by the Moon Jae-in administration. Last year, when fuel costs plummeted due to a drop in international oil prices, the company managed to turn into a surplus after 3 years with an operating profit of 4 trillion won.

[백상경 기자 / 오찬종 기자][ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]

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