The state power company has decided to freeze electricity prices for the first quarter of next 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 January-March 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 set 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 instructed it to keep the rate unchanged for the first quarter, citing the company’s financial condition and the large amount of unadjusted fuel cost charges accumulated in recent years. The utility added that it has also been asked to continue its self‑help efforts to normalize its management.