KEPCO President: "Social Costs Not Included in Nuclear Power Generation Costs"

Kim Jong-gap "Request Sanjungwi to Discuss Inclusion of Environmental Costs in Electricity Rates"
In response to question "Isn't the performance decline due to the 탈원전 policy?"
"Please consider that some nuclear plants were not operated due to safety issues"

Jong-gap Kim, President of Korea Electric Power Corporation. (Photo by Korea Electric Power Corporation)

[Asia Economy Reporter Moon Chaeseok] "If you call the inability to operate nuclear power plants due to safety issues 'denuclearization,' what can we do? Also, not all social costs are included in the current nuclear power cost calculation. They must all be accounted for someday. I hope the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee (Sanjoongwi) will discuss this issue as well."

On the 25th, Kim Jong-gap, CEO of Korea Electric Power Corporation (KEPCO), responded this way to a question from Kim Jeong-jae, a member of the Future United Party, during the National Assembly's Sanjoongwi Budget and Accounts Special Committee (Budget Committee) meeting.

Rep. Kim asked whether the sharp decline in operating profit compared to 2016, when oil prices were similar to the first half of this year, was due to the government's denuclearization policy. According to him, the international oil price was $41 per barrel in both 2016 and the first half of this year, but operating profit dropped from 12 trillion won to 800 billion won.

CEO Kim replied, "The biggest factor affecting KEPCO's profitability is fuel costs."

Rep. Kim asked again, "If, as in KEPCO's past press releases, the more nuclear power plants operate, the more profit is made, isn't the criticism that the denuclearization policy caused losses valid?"

To this, CEO Kim retorted, "How can you call nuclear safety management 'denuclearization'?" and asked, "Please tell me which nuclear power plants KEPCO reduced operation of due to denuclearization."

Rep. Kim pointed out that KEPCO distorted the difference between nuclear power utilization rate and nuclear power generation volume in its first half performance announcement press release.

According to him, the nuclear power utilization rate is an efficiency indicator, while nuclear power generation volume is a quantity indicator. The press release, which stated that the decline in nuclear efficiency was not a major cause of performance decline compared to the reduction in fuel costs, failed to properly reflect the fact that performance decreased due to reduced nuclear power generation volume.

CEO Kim answered, "The decisive factor affecting KEPCO's management and cost structure is fuel prices. According to the current nuclear power cost calculation method, increasing (nuclear) operation rate and production volume does help KEPCO's management, but calling nuclear power plants that could not operate due to safety issues 'denuclearization' is incorrect."

He added, "Not all social costs (for example, Renewable Portfolio Standards (RPS) for new and renewable energy supply obligations) are included in the current nuclear power cost calculation. They must all be accounted for someday, and I hope Sanjoongwi will discuss this issue as well."

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