South-Korea based electric power distribution company Korea Electric Power Corporation (KEPCO) has increased the industrial electricity price for larger companies as of November 9, while the prices for the public and small companies have remained unchanged, according to a report by Reuters.
The price hike of KRW 10.6/kWh for larger companies is aimed at bringing KEPCO’s current debt down. With the increase in electricity prices, local steelmakers, which operate with electric arc furnace, will see their production costs increase, which may also be reflected in steel prices.
According to KEPCO’s calculations, electricity bills should rise by KRW 45.3/kWh this year, up by 38 percent from the average level in 2022, to solve its financial crisis.