Business and industry : Economy : News : The Hankyoreh Mobile

With electricity and gas rate hikes temporarily suspended in the second quarter, Korea Electric Power Corporation and Korea Gas Corporation are concerned that if the rate hike is delayed, KEPCO’s statutory bond issuance limit is expected to be exceeded, and KOGAS’ accumulated receivables will reach 1.3 billion won. revealed On the 2nd, the Ministry of Trade, Industry and Energy held the ‘Emergency Management Status Review Meeting for Energy Public Enterprises’ and comprehensively checked the financial situation of energy public enterprises and possible situations resulting from the postponement of rate hikes. KEPCO explained that it is issuing debentures to finance the purchase of electricity, which is paid to power generation companies four times a month. If the electricity rate hike is put on hold for a considerable period of time, there is no choice but to further increase the size of the bond issuance, and there is a possibility that a factor of disturbance in the bond market may occur, in which market funds are concentrated on KEPCO bonds. Meanwhile, it was also revealed that if KEPCO loses more than 5 trillion won this year, it is expected that KEPCO’s statutory bond issuance limit will be exceeded in 2024. KEPCO also announced that if there is a disruption in the issuance of bonds, a financial crisis will occur due to disruptions in the payment of electricity purchases and difficulty in paying equipment and materials and construction costs, which will spread throughout the electric power industry ecosystem, including power generation companies and the construction industry. KOGAS predicted that receivables would accumulate up to 12.9 trillion won by the end of this year if gas rates remain frozen. KOGAS is negotiating to secure LNG supplies due to increased demand for LNG following the recovery of the Chinese economy following COVID-19, competition with European countries to introduce LNG for stockpiling, and deteriorating financial conditions amid continuing uncertainty in the global LNG market. was concerned that it might have a negative effect on In this regard, KEPCO and KOGAS decided to implement plans for financial soundness of 150 billion won and 2.7 trillion won, respectively, and to discover and implement additional labor cost adjustments and the sale of non-core assets. The Ministry of Trade, Industry and Energy plans to hold an emergency meeting of private members of the Energy Commission on the 3rd, attended by Minister Lee Chang-yang, and announce plans to adjust electricity and gas rates as soon as possible. Reporter Shin So-yoon [e-mail]