The state power company has decided to freeze electricity prices for the third quarter of the year.

The Korea Electric Power Corporation(KEPCO) said Monday that it will maintain the adjusted unit fuel cost, a key factor in determining electricity rates, at the current level of five won per kilowatt-hour for the July-September period. 

Electricity rates are calculated by adding the basic fuel cost, the climate change and environmental fee, and the fuel cost adjustment rate.

The fuel cost adjustment unit rate is determined before each quarter based on the prices of energy sources, such as coal and liquefied natural gas, in the preceding three months.

KEPCO said the government has instructed it to maintain the current rate of five won per kilowatt-hour in the third quarter, considering KEPCO’s financial situation and the significant amount of unadjusted fuel cost charges in the past. 

The heavily indebted company said it was also asked to continue its efforts to normalize its management.