Power Business Structure
High-Quality Electricity via Demand Optimization
Sales and Demand Management
We deliver world's highest quality electricity at reasonable rates,
while managing demand by optimizing the usage patterns.
Electricity Sales
We enhance public convenience by reasonably managing the electricity pricing system and innovating customer service.
World's Highest Quality Electricity
Transmission and
Distribution Loss Rate Among the lowest in the world
Distribution Loss Rate Among the lowest in the world
3.52
%
-
3.5
KEPCO 2022
-
4.6
Japan 2020
-
5.4
USA 2021
-
7.7
France 2019
-
8.4
UK 2020
Average Outage Time
per Household As of 2024
per Household As of 2024
9.29
minutes / Customer
Electricity Sales Status
As of 2024- Number of Customers
-
25.32 million
- Sales Volume
-
549,821 GWh
- Electricity Sales Revenue
-
895,794 (KRW) billion
Electricity Rate Adjustment Criteria
General Principles of Electricity Rates
-
01 Cost Principle
Electricity rates are determined based on the costs incurred under delegent and efficient management.
-
02 Fair Compensation Principle
Dividends, interest payments, and essential business expansion costs are taken into account.
-
03 Principle of Fairness
The determined rates apply fairly and equitably to all customers.
Tariff Adjustment
- In principle, tariffs are set at a level that recovers total costs.
- The difference between total costs and electricity sales revenue serves as a factor for adjusting the tariff.
Cause of Rate Increase (Cost Deficit)
Electricity Sales Revenue
Total Cost
Power Purchase Cost+Other Expenses+Appropriate Investment Return
Power Purchase Cost+Other Expenses+Appropriate Investment Return
Cause of Rate Decrease (Excess Revenue)
Electricity Sales Revenue
Tariff Adjustment Procedure
Application
Authorization
Electricity Commissionunder MOTIE
Consultation
Expert Consultationby MOSF
- Article 16 (Terms and Conditions of Electricity Supply), Electric Utility Act
- Article 5 (Determination of Public Utilities Charges and Fees), Price Stabilization Act
- Notice by the Minister of Trade, Industry and Energy - Electric Rate Calculation Standards
- Notice by the Minister of Strategy and Finance - Public Utilities Charges and Fees Calculation Standards
-
01 (Draft) Rate Adjustment and Reform Plan Approved by Board
KEPCOCalculation Principle: Electric Rate shall be adjusted to a level that compensates for the total cost of electricity supply to the Korean market
(Article 6, Enforcement Decree of Price Stabilization Act and Article 11, Electric Rate Calculation Stnadards) -
02 Submitted to Electricity Commission under MOTIE for Approval
KEPCO -
03 Consulted with Ministry of Strategy and Finance
Ministry of Trade,
Industry and EnergyThe Minister of Strategy and Finance, if necessary, will consult experts on the appropriateness of cost calculations, consumer impact, and the national economy.
-
04 Review and Decision by the Electricity Commission
Ministry of Trade,
Industry and Energy -
05 Notification of Decision to KEPCO
Ministry of Trade,
Industry and Energy -
06 Rate Adjustment/Reform Announced and Implemented
KEPCO
Demand Management
We implement an electricity demand management system for a stable power supply and energy conservation.
What is Demand Side Management?
Demand Side Management("DSM")
DSM refers to activities that adjust consumers' electricity usage patterns to meet electricity demand at the lowest cost.
Through DSM, we can stabilize the power supply, reduce energy use, conserve energy resources, and lower costs.
The Importance of Demand Management
National Saving Energy and Reduced Impact
- Energy resource savings
- Greenhouse gas reduction
- Minimization of environmental harm
KEPCO Stable Power Supply and Improved Equipment Utilization
- Stable power supply
- Improved equipment utilization rate
- Optimal investment in assets
Customers Reduced Electricity Bills and Improved Usage Efficiency
- Improved electricity usage efficiency
- Reduction of electricity bills
- Receipt of incentives
Types of Demand Management
kW
Time
Efficiency Improvement
Efficiency Improvement
We can manage the demand by using electricity more efficiently, by using high-efficiency devices and being aware of how to save energy. Programs that promote use of high-efficiency devices fall under this category.
kW
Time
Maximum Demand Suppression
Load Management
Reducing the seasonal and the hour-of-day peak demands is one of the most recognized method of demand management.
Examples include remotely controlling the HVAC systems of buildings, installing peak demand controllers, and operating demand response markets.
Energy Efficiency Resource Standard("EERS")
The Demand Management System Implemented by KEPCO
Through EERS, the Korean government mandates energy suppliers to reduce a certain percentage of the electricity they supply by improving efficiency. EERS was introduced to improve energy efficiency from both economic and environmental perspectives, and to establish a sustainable energy management system. To perform its obligation, KEPCO promotes various energy-saving activities, such as promoting use of high-efficiency devices, implementing programs that encourage consumers to change their behaviors, and collaborating with energy service companies("ESCOs").