In the third quarter of this year (July-September), Korea Electric Power Corporation recorded an operating loss of over KRW 7.5 trillion and recorded a cumulative loss of nearly KRW 22 trillion this year.
KEPCO announced today (11th) that its accumulated operating loss on a consolidated basis reached 21,834.2 billion won through the third quarter of this year due to the continued energy crisis.
This is the largest operating loss in history based on the cumulative basis of the first to third quarters.
In the first quarter (January-March) and in the second quarter (April-June), it posted a loss of 7.786 trillion won and 6.516 trillion won, respectively, and in the third quarter, it increased by more than 1 trillion won from the previous quarter. It recorded a deficit of 530.9 trillion won.
This is the highest number on record as of the third quarter.
The accumulated operating loss up to the third quarter was a whopping 20.71 trillion won increase from the same period last year (-1124 trillion won).
Sales in January-September increased by 6.61 trillion won to 5,765.1 billion won, despite the increase in electricity sales and rate adjustments, but operating expenses surged by 27.32 trillion won to 73.05 trillion won in fuel prices. This is according to the record of KRW 999.3 billion.
Specifically, until the third quarter of this year, electricity sales revenue increased by KRW 5,438.6 billion (12.8%) compared to the same period last year, increasing by KRW 5,438.6 billion (12.8%) to KRW 47,956.8 billion as the manufacturing average utilization rate increased by 3.7% and the unit price increased by 8.2% due to rate adjustment. recorded.
However, the cost increased significantly, with the subsidiary fuel cost increasing by KRW 10,810.3 billion and by private power generation companies by KRW 1572.9 billion.
According to KEPCO, this is the result of an increase in power generation due to an increase in electricity demand, a surge in fuel prices such as liquefied natural gas (LNG) and coal, and the consequent increase in the wholesale price of electricity more than doubling.
Other operating expenses also increased by KRW 1.445.1 trillion due to the increase in depreciation costs resulting from the acquisition of power generation and transmission and distribution facilities.
As KEPCO's large-scale losses are expected to continue in the fourth quarter, the possibility of an annual loss of close to 30 trillion won this year is gradually increasing.
This is because fuel and electricity purchase costs have increased significantly due to a surge in international energy prices, but electricity rate increases are relatively restrained and electricity sales prices have not risen that much.
In order to cope with the accumulation of large-scale deficits resulting from the continued global energy crisis and the rapid deterioration of its financial structure, KEPCO plans to sell non-core assets, adjust the timing of investment projects, and strengthen the management of electricity supply costs in accordance with the fiscal consolidation plan. We aim to improve our finances by KRW 300 billion.
In addition, as the limit on bond issuance is expected to be exceeded due to an increase in borrowings, the KEPCO Act will be revised to raise the limit and diversify borrowing sources, such as expanding bank borrowing, to secure the necessary funds for a stable power supply.
In particular, KEPCO emphasized that it would closely consult with the government on the normalization of electricity rates and improvement of related systems in connection with the government's energy policy direction to induce rational energy consumption through timely provision of price signals and to overcome the financial crisis.
A KEPCO official said, "It is an urgent situation that an additional increase in electricity rates is fundamentally based on fuel cost."
Previously, KEPCO raised electricity rates three times (April, July and October) this year.