"In order to make up for KEPCO's deficit this year, it is inevitable to raise electricity rates by 80,000 won per household per month"

It was analyzed that in order for KEPCO to resolve its large-scale deficit this year, it would need to raise the electricity rate per household using average electricity by 80,000 won or more.

This is a level that needs to be raised by more than 260 won per kWh (kilowatt-hour). However, in the case of the fuel cost adjustment rate, which is adjusted quarterly among the current electricity rates, the maximum increase is only 5 won.

According to the data submitted by KEPCO Rep. Kim Hoe-jae of the Democratic Party of Korea, who belongs to the National Assembly’s Committee on Small and Medium Venture Business on the 21st, that KEPCO needs to raise its electricity rate by 261 won per kWh (kilowatt-hour) next month to resolve this year’s deficit. I did.

This calculation is based on the assumption that Hana Securities will make a loss of KRW 35.4 trillion as predicted in the report.

Electricity sales in the fourth quarter were estimated at 135,876 GWh (gigawatt hour).

Based on a four-person household that normally uses an average monthly electricity consumption (307 kWh), an increase of 261 won per kWh increases the burden by more than 80,000 won.

For example, if a four-person household has an electricity bill of 100,000 won in September, it is said that KEPCO will have to pay 180,000 won a month from October to December to reach the break-even point this year.

Hana Securities' KEPCO earnings forecast is the most negative among securities companies.

According to FnGuide, a financial information company, the average annual operating loss of KEPCO expected by securities companies is KRW 28,842.3 billion.

Among the 10 securities companies with expected earnings, Meritz Securities had the lowest at KRW 25,462.9 billion, and Hana Securities had the largest share with KRW 35,430.9 billion.

However, these forecasts were estimated in the middle of last month, and considering that the wholesale electricity price (SMP, system marginal price) has surged this month, the performance is expected to be close to the negative side.

SMP is the wholesale price of electricity applied when KEPCO purchases electricity from power generation companies, and it is recording 227.48 won per kWh from the 1st to 20th of this month (on land basis).

This is far higher than the April this year (201.58 won), which is an all-time high on a monthly average basis.

On the other hand, the electricity sales price does not increase that much, so the more KEPCO sells, the bigger the loss.

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However, as KEPCO calculated, it is not possible to raise the electricity rate by 261 won per kWh at once, so discussions are ongoing among government departments over the extent of the increase.

Generally, electricity rates are composed of basic rate, electricity rate (standard fuel cost), climate environment rate, and fuel cost adjustment rate.

In order for KEPCO to reach the break-even point in the fourth quarter, it is necessary to raise the fuel cost adjusted unit price by 50 won per kWh, but the adjustment is currently limited to ±5 won.

The key is price.

The government is deeply concerned about the high inflation.

Last month, the consumer price increases for electricity rates and city gas were 18.2% and 18.4%, respectively, more than three times the overall average (5.7%).