KHNP's 'Nuclear Phase-Out' Costs to Be Covered by Government... Amendment to Electricity Business Act Enforcement Decree

[Asia Economy Reporter Kim Bo-kyung] A legal basis for the government to compensate operators for cost burdens caused by the nuclear phase-out policy will be established.

On the 2nd, the Ministry of Trade, Industry and Energy announced the legislative notice of the 'Partial Amendment to the Enforcement Decree of the Electric Utility Act,' which includes the basis for cost compensation to electric power operators such as Korea Hydro & Nuclear Power.

The amendment contains provisions to use the Power Industry Infrastructure Fund to compensate the costs incurred by electric power operators during the implementation of energy policies such as the early shutdown of Wolseong Unit 1 and the cancellation of new nuclear power plant construction plans.

The detailed applicable targets and scope recognized by the Minister of Trade, Industry and Energy will be specified through a public notice after the amendment to the enforcement decree.

When determining the scope of cost compensation, factors such as the residual value of investment facilities intended for continued operation, additional fees for continued operation, land acquisition costs, facility construction and service costs, and labor costs may be considered.

It is expected that the decision on whether to compensate will be made after review by a cost estimation committee composed of accountants, lawyers, and others.

Korea Hydro & Nuclear Power invested a total of 592.5 billion KRW in equipment improvements, including safety enhancements for the approval of a 10-year extension of Wolseong Unit 1's operation. The costs incurred for the canceled four new nuclear reactors are 90.4 billion KRW for Cheonji Units 1 and 2, and 3.3 billion KRW for Daejin Units 1 and 2.

Previously, although numerous related bills were proposed in the 20th National Assembly, legislative discussions were delayed due to disagreements between the ruling and opposition parties, and the bills were automatically discarded with the end of the National Assembly, resulting in no progress in discussions related to cost compensation.

An official from the Ministry of Trade, Industry and Energy said, "With the recent proposal of the 'Special Act on Damage Investigation and Compensation for the Suspension of Nuclear Power Plants,' we expect discussions related to cost compensation to take place in the 21st National Assembly. We will actively participate in the legislative process and consult sufficiently with operators."

This content was produced with the assistance of AI translation services.