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Korea Electric announces larger quarterly loss

Korea Electric Power Corporation (Kepco) posted a quarterly loss that exceeded estimates due to tariff curbs meaning higher fuel costs could not be passed onto customers.

In a regulatory filing, Kepco said the net loss widened to KPW1090m ($1bn) from KPW835.6bn a year earlier.

The government has now allowed Kepco to increase power prices by an average 4.9 percent for the first time in a year, starting immediately. Korea’s import price of crude rose 49 per cent per barrel in July, according to government data.

The company has revised the country’s power consumption growth projection to 5.2 per cent for this year from 5.5 percent estimated in the first quarter, general manager Kim Jung In said.

Kepco had $3.64 bn of foreign-currency debt as of 30 June, of which 62 per cent was hedged, Kim said.

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