Korea South-East Power 279 billion won in losses, Korea Western Power also 155 billion won in deficit
Korea South-East Power and Korea Western Power 1in the quarter, respectively, posted operating losses of 279 billion won and 155 billion won. Electricity selling prices fell, while bituminous coal prices rose.
As the Lee Jae-myung administration’s policy of phasing out coal gathers momentum, earnings pressure has increased at the Korea Electric Power Corporation’s thermal power subsidiaries.
They are Korea East-West Power, Korea Western Power, Korea Midland Power, Korea South-East Power, and Korea Southern Power.
Of these, Korea South-East Power and Korea Western Power 1returned to losses in the quarter.
19According to data from the Financial Supervisory Service’s electronic disclosure system, Korea South-East Power279reported an operating loss of hundred million won.
Korea Western Power recorded an operating loss of155hundred million won over the same period.
Both companies shifted from operating profit to operating losses compared with the same period a year earlier.
The deterioration in their performance was partly due to a decline in the system marginal price.
The system marginal price is the benchmark price used when KEPCO buys electricity from power generators in the wholesale electricity market.
This year’s1quarterly system marginal price was1per kilowatt-hour, at107.1won.
In the same period a year earlier, the system marginal price was 1 per kilowatt-hour 115.6 won.
As this price fell, the settlement prices actually received by power generators also declined.
1The quarterly average settlement price declined by, for Korea Southern Power, 18.4% and for Korea Western Power, 16.8%.
The settlement prices of Korea East-West Power and Korea Midland Power also fell by 15.3% and 14.4%, respectively.
The settlement price of Korea South-East Power declined by 8.9%.
On the fuel-cost side, the price of bituminous coal rose.
This year’s 1quarter, the bituminous coal price per ton was 119.9 dollars.
1 years ago, the bituminous coal price per ton was 105.3 dollars.
The increase was 13.9%.
Although the price of electricity sold to KEPCO fell, fuel costs for coal-fired power generation rose at the same time.
Among power generation 5 companies, Korea South-East Power has the highest share of coal-fired power generation.
Korea South-East Power said that lower unit sales prices, reduced electricity sales volumes and a rising exchange rate led to foreign-exchange losses, including losses on lease translation.
Korea Western Power's performance declined as the closure of coal-fired power plants coincided with temporary suspensions of operations due to fires.
Sources: 뉴시스 경제
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