With electricity rates rising… Ruling party, ‘transfer of responsibility’ to KEPCO president

As the time to raise electricity rates approaches, the ruling party is pressing and discussing the resignation of KEPCO President Seung-il Jeong (58) every day. In order to calm public opinion that may deteriorate due to electricity rate hikes, it appears that the KEPCO president’s ‘management failure’ is being emphasized and he is seeking resignation as an exit strategy. However, since the main cause of KEPCO’s deficit is the sudden increase in international energy prices, the rate increase is stated to be onerous ahead of next year’s general election, leaving the responsibility to KEPCO management.

According to the Ministry of Trade, Industry and Energy and KEPCO on the 3rd, as the control normalization plan which includes self-rescue efforts is in the final stages, it is expected that the electricity rate hike will be decided next week on the earliest. It is known that KEPCO is finalizing the scope of those eligible to return the salary increase this year, which is the most controversial issue.

As the electricity rate hike approaches, the pressure from the ruling party, the People’s Power, on President Chung to resign is intensifying. On the 28th of last month, Park Dae-tae, chairman of the People’s Power Policy Committee, publicly demanded President Chung’s resignation, and on the 2nd, he repeatedly pressed, saying, “If you still cannot age to make self-saving efforts, you should give up your seat.” As Prime Minister Han Deok-soo avoided commenting directly on the ruling party’s request, some observers say President Chung’s resignation has ‘to include in the self-rescue plan.

The issue of President Chung’s future came to the fore when he was excluded from President Yoon Seok-yeol’s economic delegation to the United States at the last minute. Even inside KEPCO, which predicted the possibility of President Jeong stepping down immediately after the management evaluation of public enterprises scheduled for June, it is believed that the timing could be moved earlier due to deterioration in public opinion.

The ruling party’s attack on President Chung’s resignation is different from the previous approach, which focused criticism on the Moon Jae-in administration, saying the cause of KEPCO’s default was “the result of the unreasonable withdrawal of nuclear power plants .”

At the general meeting of policy makers held in June last year on the theme of ‘nuclear power and electricity rate increase’, the leadership of the people’s strength said at the time, “We asked for a 10-fold increase in the electricity rate, but it was approved once, and in the process of delaying the increase in the electricity rate, KEPCO’s deficit It has reached almost 30 trillion won.

The recent change of attitude has nothing to do with the party’s active interference in government policy. A former official who requested anonymity said, “Since the electricity rate hike is a vote-related issue, both progressive and conservative governments have been deferring decision-making to work-level ministries.” As he takes responsibility for raising rates, the demand seems to have increased to shatter public opinion.”

There is also analysis that the gradual normalization of KEPCO management is actually accelerating the timing of the president’s replacement. In fact, with international energy prices gradually stabilizing, expectations are growing that the deficit will ease. With the stabilization of liquefied natural gas (LNG) prices, the wholesale electricity price, which reached 240.7 won per kilowatt-hour in January this year, has dropped to 164.9 won in April. As the wholesale price of electricity, which is directly related to KEPCO’s deficit, plunges, it is expected that KEPCO’s breath will be eased. The government, which set a ceiling on the wholesale price of electricity despite opposition from private power producers, recently eased it.

An official from the electric power industry said, “Because of the huge deficit in the past, even former politicians did not want to come to KEPCO.” explained.