Korea Electric Power Corp. (Kepco) has vowed to dispose of non-essential assets and reduce spending as it tries to persuade the government to approve proposed electricity rate hikes, according to company officials, Thursday.
The slew of measures to fortify its financial soundness came hours before the state-run energy firm submitted the plan, with the energy ministry seeking a quarter-on-quarter electricity rate increase of up to 3 won per kilowatt hour (kWh). It is also demanding that the current maximum ceiling of 3 won be raised to 5 won.
Kepco's demand for rate hikes is explained in large part by its skyrocketing operating loss over the past year, brought on by spiking global crude oil, coal and liquefied propane gas prices, raw input materials to generate electricity.
But equally scrutinized is whether and by how much the state-run entity sought measures to tighten its financials, a key bone of contention set to take center stage for political debate fanned by soaring living expenses certain to accelerate in the coming months.
Kepco suffered a 7.78-trillion-won operating loss in the first three months of this year. This figure has already far exceeded last year's operating loss of 5.86 trillion won, with some market watchers fearing the loss could widen to 30 trillion won, depending on the country's energy pricing policy.
Measures
The state-run entity said it has saved 1.3 trillion won ($1 billion) in its budget, after intensive budget restructuring through sales of its assets in the amount of 130 billion won over the past month.
The 1.3 trillion won was part of the 6 trillion won spending cut it said it would achieve during an emergency meeting with its power subsidiaries, May 18.
Kepco said it will seek a law revision to increase the ceiling for the corporate bond volume total issuable. Currently, it cannot issue more than twice the amount of its capital and reserves combined. Also to be sought are the sales of its 20.47-percent stake in Korea Gas Corp. (Kogas) to Korea Development Bank, a state-run lender.
The company also said it reduced its discretionary spending by 30 percent, saving about 700 billion won. It seeks to increase its savings by more than double to 1.5 trillion won by the end of this year.
It added it will make efforts to minimize the burden of the increase in key energy costs.
"We will lead the carbon neutrality drive, organizational innovation and service improvement, thereby helping the country weather the current economic crisis," a Kepco official said.
國家男籃二隊海口集訓 兩名高中生應召入隊
US policy on 'right track' in dealing with N. Korea: Kurt Campbell
North Korea's markets expand amid layered sanctions, pandemic
US goal of denuclearizing Korean Peninsula will not change: State Dept.
North Korea replaces economy 
North Korean media criticizes Ramseyer as 'disgusting money grubber,' 'pseudo scholar'
查看所有0條評論>>