Kepco to increase electricity prices by 4.9%

Kepco will raise utility bills by an average of 4.9 percent as early as next week to improve its worsening balance sheet and help reduce power consumption.

Industrial electricity charges will go up 6 percent, with the rate for household and agricultural uses rising by up to 3 percent.

The firm had asked the government to allow it to raise utility bills by an average of 13.1 percent. But facing government opposition to a steep rate increase, it lowered the hike to 10.7 percent last month.

However, the Ministry of Knowledge Economy ordered Kepco to keep rate hike below 5 percent, expressing concerns that the drastic increase could fan inflationary pressure.

``The planned 4.9-percent increase will not help us much in reducing our deficits. But we had no other choice but to follow government instructions,’’ said a Kepco official.

Kepco posted a net loss of 2.89 trillion won in the first six months of the year, up 48.3 percent from the same period last year. Its debts rose 9.2 percent to 54.98 trillion won in June from a year earlier.

It plans to hike electricity charges once again before the year’s end.

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