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[Apha Biz=(Chicago) Reporter Paul Lee] While Korea Electric Power Corp. has been in the red for nine consecutive quarters, its power generation subsidiaries also posted losses of nearly 1.2 trillion won in the first half of this year, the report showed.
This is because KEPCO took some of the burden on KEPCO by setting the settlement adjustment coefficient low from the power generation company to buy electricity cheaply in order to reduce the deficit.
According to a state-run energy company on the 17th, KEPCO posted an operating loss of 2.2724 trillion won in the second quarter, continuing its deficit for nine consecutive quarters. The cumulative deficit amounts to 46.9516 trillion won.
Power generation companies affected by the loss of their parent company, KEPCO, also posted losses. KEPCO's power generation companies posted a total deficit of 1.18 trillion won in the first half of this year, the report showed.
As electricity bills, the price of selling electricity, did not rise significantly, KEPCO set the settlement adjustment coefficient low to reduce the cost of buying electricity.
KEPCO buys electricity from power generation companies at a price that applies the settlement adjustment coefficient, a kind of discount rate, excluding changes in fuel costs, to power wholesale prices (SMP).
In other words, KEPCO applies the settlement adjustment coefficient low, and KEPCO's burden is partially passed on to the power generation company.
As a result, KEPCO's power generation companies posted a total deficit of 1.18 trillion won in the first half of this year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
