South Korean Electricity Company Reports Fourth Year of Losses Due to Subsidies
September 16, 2011
South Korea’s main supplier of electricity, Korea Electric Power Corp.’s (Kepco), is likely to post a loss for the fourth year running as price caps aimed at curbing inflation prevent it from passing on higher fuel costs to customers, reports Bloomberg. Kepco posted a KRW 1.64 trillion (US $1.5 billion) loss for the first half of 2011 as capped prices have not risen in line with rising fuel costs or even inflation.