Electricity Commission Gains Power and Shifts in Orientation

Yonhap News Agency

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The non-standing members of the Electric Power Commission, which holds key functions such as licensing of electricity businesses and deliberation of electricity rates, are set to be largely replaced.

As it is anticipated that new members from the academic community who support renewable energy will join the Electric Power Commission, there is growing interest in how this will influence future decisions on electricity rates. At the same time, the government and the ruling party are also pushing for legislative amendments to strengthen the independence and status of the Electric Power Commission.

According to the Ministry of Climate, Energy and Environment on November 18, the terms of five members-including Lee Jongyoung, Honorary Professor at Chung-Ang University School of Law and Chair of the Commission; Kim Balho, Professor at Hongik University’s Department of Electrical and Electronic Engineering; Yoo Seunghoon, Professor at Seoul National University of Science and Technology’s Graduate School of Future Energy Convergence; Lee Sunhee, Professor at Sungkyunkwan University Law School; and Choi Seongho, Professor at Kyonggi University Graduate School of Public Administration-will end on November 27.

An official from the Ministry stated, "As the terms of the non-standing members of the Electric Power Commission expire, we are proceeding with the process of appointing new members." The Electric Power Commission consists of one chairperson (non-standing), an executive commissioner (who concurrently serves as Director General for Energy Transition Policy), and seven non-standing members. Members are appointed by the President upon the recommendation of the Minister of Climate, Energy and Environment.

According to the energy industry, the Presidential Office is reportedly conducting personnel vetting procedures for professors who have been active in progressive climate, energy, and environmental organizations. It is known that individuals associated with the Energy Transition Forum, where Minister Kim Seonghwan served as an advisor, are included. As a result, the Electric Power Commission is expected to take on a stronger pro-renewable energy orientation.

For now, the focus is on the potential increase in electricity rates. President Lee Jaemyung stated at a senior secretaries’ meeting in August that electricity rates would inevitably have to rise in order to reduce greenhouse gas emissions.

The Electric Power Commission was previously under the Ministry of Trade, Industry and Energy, but moved to the Ministry of Climate, Energy and Environment as energy functions were transferred during a government reorganization. The Commission is responsible for major tasks with significant impact on the energy industry and businesses, such as granting and amending electricity business licenses, imposing fines, and deliberating electricity rates.

However, since the Commission only deliberates and the final decision-making authority rests with the Minister of Climate, Energy and Environment, there have been numerous calls to strengthen the Commission’s independence. In particular, for electricity rates, the Commission must consult with the Ministry of Economy and Finance, which manages prices, during the deliberation process, leading to ongoing debates over political neutrality.

The reason there is so much attention on the upcoming appointments to the Electric Power Commission is that, under the new administration, there has been active movement to amend the law to enhance the Commission’s independence and status. Kim Joungho, Heo Seongmu, and Park Jihye, lawmakers from the Democratic Party, each sponsored amendments to the Electric Utility Act in January, May, and July of this year, respectively, aiming to expand the role of the Electric Power Commission. All three bills were introduced at the full meeting of the National Assembly’s Climate, Energy, Environment and Labor Committee on November 14 and were referred to a subcommittee.

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The bill sponsored by Kim Joungho seeks to expand and reorganize the Electric Power Commission as a central administrative agency under the Prime Minister, granting it independent authority over key licensing systems and consumer rates related to electricity, gas, and thermal energy.

The bill proposed by Heo Seongmu aims to expand the Commission’s authority from deliberation to both deliberation and resolution, and includes the establishment of the Korea Power Regulatory Authority to oversee the electricity market. The bill introduced by Park Jihye would place the Electric Power Commission under the President, granting it both deliberative and decision-making powers to strengthen its independence and expertise.

The opposition party has proposed the Energy Tariff Commission as an alternative. Recently, Kim Sohee, a lawmaker from the People Power Party, sponsored an amendment to the Electric Utility Act to establish the Energy Tariff Commission as a central administrative agency under the Government Organization Act, which would comprehensively manage the prices of electricity, gas, and thermal energy by energy source.

Amid these moves by the government and political circles, the power industry is also responding quickly. The Korea Electrical Engineers Association will hold the 46th Power Policy Forum at the Samjung Hotel on November 25, under the theme "Strengthening the Independence and Expertise of the Electric Power Commission to Ensure Fairness in the Electricity Market."

At the event, attorney Lee Gwangmin of Bae, Kim & Lee LLC will present on "Measures to Strengthen the Status of the Electric Power Commission as an Independent Regulatory Body," while Professor Ju Seonggwan of Korea University’s Department of Electrical and Electronic Engineering will present on "Measures to Strengthen Market and Grid Monitoring Systems through the Establishment of the Power Regulatory Authority."

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