Business · Companies · 2 hrs ago
Cancelled grid work plan helped drive down South Korea’s power price
A cancelled maintenance plan for South Korea’s Shingapyeong substation affected the country’s wholesale electricity market in September.
The plan was filed before the deadline, but the work did not take place, and the Korea Electric Power Corporation later said it cancelled the job because conditions had changed.
The wholesale price fell by as much as 56 won per kilowatt-hour during the day after the plan was registered.
Under rules introduced in 2022, costly power plants can be excluded from setting prices when grid work forces them to run, which can push the wholesale price down.
The cancellation was reported after the price-setting deadline, and the price was not corrected, though the utility said it had no intention of manipulating prices.
Private power producers lost sales margins, while the utility saved on the cost of buying electricity.
The incident has raised concerns about a planned system of regional wholesale prices, and the story argues that market rules need to be revised to prevent similar distortions.
A cancelled plan for work at the Singapyeong substation helped push South Korea’s wholesale electricity price sharply lower, even though no work took place on the scheduled day.
The plan led to high-cost power plants in the capital region losing the right to set the price, and the wholesale price fell by as much as 56 won per kilowatt-hour during the day.
Korea Electric Power Corp. said it cancelled the work because conditions had changed, while the Korea Power Exchange initially said the utility had notified it late.
The two agencies later agreed that the utility had submitted the plan and then cancelled it, but the price was not corrected afterward.
Private power producers say the episode exposed weaknesses in market rules and left them bearing the cost of lost sales margins.
- Who
- Korea Electric Power Corp., the Korea Power Exchange and private power producers.
- What
- A cancelled substation work plan affected wholesale electricity prices, which fell sharply even though the work did not take place.
- When
- The plan was submitted on September 8 for work scheduled on September 9. The article was published on October 22, 2026.
- Where
- At the Singapyeong substation in South Korea.
- Why
- The work plan triggered rules that excluded high-cost power plants in the capital region from setting the wholesale price. The utility said it cancelled the work because conditions had changed.
Private power producers
Korea Electric Power Corp.
Market pricing
Private power producers
Producers say costs from running expensive plants because of grid constraints should be reflected honestly in wholesale prices.
Korea Electric Power Corp.
The utility’s cancellation of the planned work meant the high-cost plants did not set the price, which lowered the wholesale price.
Responsibility for grid constraints
Private power producers
Producers say the utility is responsible for building transmission lines and should not shift the costs of grid congestion onto the market.
Korea Electric Power Corp.
The utility faces strong local opposition to grid construction; the article says it has cited these difficulties.
Korea Electric Power Corp. submitted a plan for work at the Singapyeong substation before 14:00 and notified the market operator of the cancellation around 18:00.
The scheduled substation work did not take place, while the wholesale electricity price fell by as much as 56 won per kilowatt-hour during the day.
Hankyung reported on the unusual calculation of electricity prices, prompting conflicting initial responses from the two agencies.
The utility and the market operator agreed that the utility had cancelled the work because of changed working conditions and that the operator had not requested the cancellation.
- Scheduled work
- Singapyeong substation, September 9
- Cancellation notice
- Around 18:00 on September 8
- Price drop
- As much as 56 won per kilowatt-hour during the day
- September wholesale price
- 119 won per kilowatt-hour, about 29 won below August
- Power generation gas price
- 52% higher in August than in January
- LNG generation cost
- About 26% higher than in January
What people are saying
We cancelled the construction schedule at the request of the Korea Power Exchange.
We cancelled the Singapyeong substation work because of a change in working conditions, and there was no request from the Korea Power Exchange.
Korea Electric Power Corp. notified us late that it was cancelling the construction.