[Edaily Reporter Jung Du-ri ] #KoreaElectricPower (KEPCO) has frozen electricity rates for the third quarter of this year. This marks the 13th consecutive quarter of rate freezes for residential customers and the 7th consecutive quarter for industrial customers.

On the 22nd, KEPCO announced the details of its fuel cost adjustment rate calculation for the third quarter of 2026 (July–September).

Electricity rates consist of a basic charge, a consumption charge (based on standard fuel costs), a climate and environmental charge, and a fuel cost adjustment charge. Among these, the fuel cost adjustment rate serves as the basis for the fuel cost adjustment charge, which reflects short-term fluctuations in energy prices.

KEPCO and the authorities adjust electricity rates within a range of ±5 won per kilowatt-hour (kWh) on a quarterly basis, based on fluctuations in fuel costs—which account for a significant portion of power generation costs—and announce the results at the end of each quarter. The decision to adjust rates is made by considering the market prices of power generation fuels, such as bituminous coal, liquefied natural gas (LNG), and bunker C oil, over the past three months.

Based on this formula, KEPCO calculated the fuel cost adjustment rate for the third quarter of this year at minus (-) 3.4 won/kWh. However, the government decided to maintain the fuel cost adjustment rate at 5 won/kWh, as in the past, in consideration of the cost burden KEPCO had previously absorbed beyond the rate reductions it had implemented.

In addition, as discussions regarding the basic charge, energy consumption charge, and climate and environmental charge—which determine electricity rates—have not progressed, electricity rates for the third quarter will remain frozen. With this freeze, residential electricity rates have remained unchanged for 13 consecutive quarters, and industrial electricity rates for 7 consecutive quarters.

KEPCO stated, “The government, taking into account KEPCO’s financial situation and the significant amount of unadjusted fuel cost adjustment charges, notified us that it would continue to apply the same +5 won/kWh rate as in the second quarter, provided that KEPCO thoroughly implements its self-rescue efforts to normalize operations.”