Park Dae-chul "Cannot disclose timing of electricity and gas price hikes... Regret no response from KEPCO and Gas Corporation on self-help efforts"

Industry-Ministry-Party Meeting on Electricity and Gas Prices on the 20th

Park Dae-chul, the Policy Committee Chairman of the People Power Party, said on the 20th, "The increase in electricity and gas rates is a 'matter of circumstances,'" adding, "I cannot disclose the timing."

On the same day, Park held the 'Industry-Ministry-Party-Administration Meeting on Electricity and Gas Rates' and stated, "The economic and energy industries share the recognition that an increase in electricity and gas rates is inevitable," but also said, "It is a matter of circumstances, and I cannot disclose the timing of the increase." Representatives from the economic and energy industries attended the meeting. Despite this being the fourth meeting involving the party and government, the timing and extent of the rate increase have not been decided.

Previously, on the 6th, a similar meeting involving civic groups, academia, and experts was held, but the timing and extent of the rate increase were not finalized. Instead, the People Power Party demanded efforts for restructuring energy public enterprises such as Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation as a way to address the electricity and gas rate increase issue. Related party-government consultations were also held on March 29 and 31.

Attending the meeting were Policy Committee Chairman Park Dae-chul, Han Mu-kyung, Secretary of the Industry and Energy Committee, Lee Yang-su, Senior Deputy Floor Leader, Park Il-jun, 2nd Vice Minister of the Ministry of Trade, Industry and Energy, Lee Ho-hyun, Director of Power Policy at the Ministry, and Yoo Beop-min, Director of Resource Industry Policy at the Ministry. From the economic and industrial sectors, the Korea Chamber of Commerce and Industry, the Root Industry sector, the Semiconductor industry, and the Korea Federation of SMEs participated. From the energy industry, the Korea Electrical Contractors Association, the Electrical Industry Promotion Association, the Private Power Generation Association, and the City Gas Association attended.

Park criticized the government energy authorities and public enterprises once again. He said, "Even KEPCO employees installed solar panels under family names or invested thousands of billions of won in KEPCO University," and added, "They concealed the results of internal audits on corruption and showed no reflection on their reckless management." He continued, "Is this the time to stir public opinion with 'If we don't raise rates, we will all die' while sinking in this swamp of moral hazard?" He said, "Before asking the public to raise rates, we repeatedly urged KEPCO and the Gas Corporation to make painful efforts, but there has been no response yet, which is regrettable."

In the subsequent closed meeting, opinions from the economic and energy industries were shared. The Korea Chamber of Commerce and Industry requested adjustments to the late-night Saturday rate plan; the Root Industry sector asked for company-tailored rate plans; the Semiconductor industry called for the establishment of a stable power supply infrastructure; and the Korea Federation of SMEs proposed including electricity charges in delivery price rate plans. The Korea Electrical Contractors Association and the Electrical Industry Promotion Association demanded the realization of electricity rates, while the Private Power Generation Association requested the establishment of a rate decision system through a committee.

Park said, "If rates are increased, there is a concern that additional burdens will be imposed on industries already struggling with export slumps and rising raw material prices," but added, "If rates below cost continue, the financial situation of energy public enterprises will deteriorate, leading to reduced facility investment and difficulties in financing, which could cause significant confusion in the energy industry." He said, "Taking all these situations into comprehensive consideration and reflecting the difficulties of both the economic and energy industries, we will come up with a reasonable energy rate adjustment plan."

Park Dae-chul, Chairman of the Policy Committee of the People Power Party, is speaking at the industry-government-party meeting on electricity and gas rates held at the National Assembly on the 20th. Photo by Kim Hyun-min kimhyun81@

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