In South Korea, the electricity rates for the second quarter of 2023 (April to June) have been frozen at current levels, as confirmed by Korea Electric Power Corporation (KEPCO). The adjustment rate for fuel costs, which accounts for short-term fluctuations in energy prices, will remain at +5 won per kilowatt-hour. This decision comes amidst ongoing fluctuations in international fuel prices that have affected coal and liquefied natural gas costs over the past three months.

KEPCO has indicated that the maintenance of this adjustment rate, which impacts electricity billing through various components including basic rates and climate fees, comes as a result of the financial situation of the corporation. The rate was communicated to them by the government, considering the substantively significant unadjusted amounts tied to fuel costs. This means that despite the increase in costs, there will not be any changes to the burden on consumers over this quarter.

The decision to keep the fuel cost adjustment rate at its maximum permits further evaluation of the market conditions and allows for stabilization of consumer costs during a period marked by volatile energy prices globally. As the situation continues to evolve, further adjustments may be necessary in future billing cycles, depending on international energy trends and KEPCO's financial health moving forward.