Settlement Adjustment Factor
π (pi) · 정산조정계수 · settlement coefficient
It adjusts the settlements of generators at KEPCO majority-owned companies and of central-dispatch coal units. The rules place it among measures for power price stability.
The settlement adjustment factor is a coefficient for adjusting the trading settlements of generators owned by generation companies in which a rate-regulated electricity retailer (KEPCO) holds a majority stake, and of central-dispatch coal generators.
It covers the nuclear, coal, domestic-coal and general central-dispatch generators of KEPCO's generation subsidiaries, plus other central-dispatch coal generators. Separate factors are set by generation type; the Cost Evaluation Committee deliberates and decides them, and changes need government approval. The rules place this adjustment under an article titled 'measures for power price stability, etc.'
News-reading tip: if SMP rose but the profits of KEPCO's generation subsidiaries did not rise as much, this factor may be one reason. The actual values are set in the cost-evaluation process, not in the text of the rules, so check any figure in an article against the source data.