KEPCO’s monopoly breaking the takeover level… Inevitably increasing electricity rates in the second half

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Kim Ki-heung, Deputy Spokesperson for the Transition Committee, at the Energy Policy Normalization Briefing (Seoul = Yonhap News)
Kim Ki-heung, deputy spokesperson for the Presidential Transition Committee, is briefing on the ‘Five Policy Directions for Normalization of Energy Policy’ with the 2nd Economic Division at the joint press conference of the Transition Committee in Tongui-dong, Jongno-gu, Seoul on the 28th. [인수위사진기자단]

The Yoon Seok-Yeol government will gradually open the electricity sales market monopolized by KEPCO and establish the principle of ‘costism’ in the electricity rate system. If the international energy market price rises in the second half of this year, an electricity rate hike is expected to be inevitable.


The 2nd Economic Division of the Presidential Transition Committee announced the ‘basic direction and five key tasks for the normalization of energy policy’ on the 28th. The transition committee first set basic directions, such as a rational harmony of nuclear power and new and renewable energy, a shift from supply expansion to a stronger demand policy, and normalization of energy market functions.



It was decided to establish the principle of cost-based electricity rates and expand the organization and manpower in the direction of increasing the independence and professionalism of the Electricity Committee. In addition, the transition committee announced that KEPCO will gradually open the structure of monopoly sales by expanding the scope of power purchase agreements (PPAs) and nurture various demand management service companies.



Expert member Park Joo-heon (professor of economics at Dongduk Women’s University) pointed out at a briefing on the same day that KEPCO recorded the largest deficit in history last year, amounting to 5.9 trillion won, “it is diagnosed that it is caused by incorrect electricity pricing policy practices.” In addition, she emphasized, “We need to switch to a system that determines prices independently based on costism.”



The new government will restore the nuclear power plant industry ecosystem and start export industrialization, and foster new and renewable energy such as solar power, wind power, and hydrogen as new growth engines. The current government is planning to resume the construction of Shin-Hanul Units 3 and 4 as soon as possible to restore the nuclear power plant ecosystem that has retreated. Specifically, they set the goal of winning orders for 10 nuclear power plants from abroad and decided to establish a nuclear power plant export promotion group. The South Korea-US nuclear power alliance will also be strengthened.

Read Also  Park Ki-dong, Chuncheon District Prosecutor's Office, Wonju District Prosecutor's Office, Joined Expert Committee

The new government’s energy policy shift is a downward revision of the ‘2030 National Greenhouse Gas Reduction Target (NDC) of 40%’ (reducing greenhouse gas emissions by 40% compared to 2018 by 2030) announced by the Moon Jae-in government at home and abroad. analysis was also carried out. In response, expert committee member Park emphasized that “in terms of national trust, we absolutely abide by the goal,” and explained, “In the way to achieve the goal, we will design a new nuclear power plant.”

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