[Basic Knowledge] Essential Knowledge of Power Procurement: Fuel Cost Adjustment System

Quickly reflects price fluctuations of fuel! Introducing a system that automatically adjusts electricity rates every month.

The fuel cost adjustment system is a mechanism that automatically adjusts electricity rates every month in response to fluctuations in the prices of thermal fuels (crude oil, LNG (liquefied natural gas), and coal) in order to quickly reflect those changes in electricity prices. It is calculated based on the difference between the average fuel price derived from the trade statistics for crude oil, LNG, and coal over the past three months and the reference fuel price. For new power companies, to clarify that electricity rates have been reduced due to switching from traditional power companies, it is common for the fuel cost adjustment amount to be set at the same rate as that of the relevant area's power company. However, unlike the "renewable energy generation promotion surcharge," there is no legally established unit price, and some new power companies set their own fuel cost adjustment unit prices. *For more details, please refer to the related links or feel free to contact us.

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