The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Minjae Lee - NH Investment & Securities Co., Ltd., Research Division - Analyst
: [Interpreted] I have about 3 questions. First, could you share with us some updates on your offshore wind business -- wind power business? Second
is on the issue of network neutrality. We hear that there has been some forum or discussion between the relevant stakeholders on network neutrality.
And when we look at the relevant association that gathered in the forum, it seems that there was a different representative for KEPCO and GENCO
as well. So does GENCO and KEPCO share the same objective? That's my second question. And third question is from , will you have the same
identical of base fuel cost for 2022 of -- versus December of 2020 to November of 2021? Or will there be any incremental increase.
Yoonhye Cho
[Interpreted] To answer your first question, currently, the offshore wind power project that KEPCO is involved in is the Southwest Wind power
project as well as Jeju Hanlim wind power project. And we're participating in form of SPC. Currently, the National Assembly has a pending bill on
the house to revise the relevant regulations and rules to allow KEPCO to directly get involved into this offshore wind power plant.
And also on your question regarding network neutrality regard -- and especially regarding the renewable energy and the overall power plant. It is
external -- it is disclosed to external parties in a transparent manner. When you refer -- look at our T&D planning as well as the overall system
equipment planning and facilities planning, it is all going to go through the approval of the Power Approval Committee, which will be transparently
disclosed and shared with the public.
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FEBRUARY 19, 2021 / 6:00AM, 015760.KS - Q4 2020 Korea Electric Power Corp Earnings Call (English, Korean)
On your question on the base tariff. The tax will be recalculated and reassessed when there is a new amended and changed power tariff on the
table. Without any changes into the tariff, current tariff system, the base rate will be the same as what is in place now.
Question: Kyung-Won Moon - Meritz Securities Co., Ltd., Research Division - Analyst
: [Interpreted] First of all, congratulations on your performance that delivered higher than market expectation. I have about 3 questions. First question
is on the coal utilization. On a monthly basis, the utilization has gone up, starting from October, November and December. But as far as I know,
starting from December, we have certain cap or limitation on the fine dust particle matter control. So how do you explain the fact that the coal
utilization still increase in the month of December anyway?
And second question is on the revised bill on the National Assembly for the power business. Personally, I would like to see the bill passed through
and be applied. However, if the bill is not passed, what will be the impact on the renewable energy project that you're pursuing? What will be the
difference between having a separate entity for renewable businesses versus working through SPC? What will be the impact on the overall funding
cost and the magnitude of the funding that you can actually source from the market?
Third question is on the T&D CapEx. I mean, we have seen the wide -- broad range of blackout in Texas. But as we see more renewable energy in
the market, we need to also see increased CapEx for the T&D infrastructure. But we don't see that abreast of investment that has been happening.
Will there be additional investment in such regard? Even if it's not on a quantitative number, can you share at least on a qualitative way -- level at
how you're going to push this issue?
Yoonhye Cho
[Interpreted] To answer your first question, we have seen, of course, the control over the particulate matter issues starting in December and need
to control the PM level accordingly. But the utilization of fire -- coal-fired power plant depends on various factors, such as demand as well as the
planned stoppage and maintenance of other generations and also the fuel unit cost as well. So the system -- the PM regulation alone does not
affect the utilization as a whole. So we have to consider various factors. And as accordingly, we have seen a slight increase in utilization.
Currently, it is very difficult for us to forecast into what will be the impact of bill not being passed by the National Assembly. But what we can,
however, anticipate is that in terms of fund sourcing, the direct investment, which is through a separate entity, will have -- will allow us to have
more funding compared to SPC as well as more feasibilities and the ease of doing business if we go direct.
If you look at our T&D CapEx, it was KRW 6.2 trillion in 2020 and KRW 6.4 trillion in 2021. And we expect to have T&D CapEx of KRW 7 trillion in 2022.
Such CapEx planning is to maintain current power quality that we're providing to the market at the moment as well as not to be disturbed or not
to have supply discontinuity in the market. And it also considers renewable infrastructure as well.
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FEBRUARY 19, 2021 / 6:00AM, 015760.KS - Q4 2020 Korea Electric Power Corp Earnings Call (English, Korean)
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