South Korea’s electricity rates are set to remain effectively unchanged in the third quarter of 2025 as Korea Electric Power Corp. (KEPCO) maintains the fuel cost adjustment rate at its maximum level.

The state-run utility announced on Monday that the adjustment rate for the July to September period will stay at the upper limit of 5 won ($0.004) per kilowatt-hour (kWh).

Electricity bills in South Korea consist of a basic charge, an energy usage charge, a climate and environment charge, and a fuel cost adjustment charge. The fuel cost adjustment reflects short-term changes in energy prices and is recalculated quarterly based on fuel price fluctuations over the preceding three months. The adjustment rate ranges from minus 5 won to plus 5 won per kWh.

Based on recent declines in liquefied natural gas (LNG) prices and other indicators, the rate for the third quarter of 2025 would have been reduced to minus 5 won. However, the Ministry of Trade, Industry and Energy directed KEPCO to keep the rate at 5 won, citing the utility’s ongoing financial difficulties and the large backlog of unadjusted fuel cost recoveries. There are currently no discussions underway regarding changes to the energy usage charge component of electricity bills.

KEPCO has maintained the maximum rate for 13 consecutive quarters since the third quarter of 2022 as part of efforts to shore up its financial position.

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