KEPCO’s plan to aid vulnerable group with electricity fund faces setback

[Photo by Yonhap]

The state-run utility company Korea Electric Power Corp. (KEPCO) is facing a setback in its plan to use 30 percent of the energy aid amount for low-income households from an electricity fund due to stalled approval at the National Assembly.

According to the National Assembly and the Ministry of Trade, Industry, and Energy on Monday, the standing committee on industry, trade, resources, and small- and medium-sized enterprises resolved to allocate 94.6 billion won from the electricity fund to support electricity bill discounts for low-income households. This sum accounts for approximately one-third of KEPCO’s anticipated expenses this year to maintain electricity rates for low-income households, estimated at 288.9 billion won.

Although the proposal to utilize 94.6 billion won from the electricity fund was not part of this year’s fund operation plan, it was later added during the standing committee’s preliminary review, according to an official from the energy ministry.

“We lack precise details into the circumstances behind the proposal’s dismissal, but the newly added 94.6 billion won was not approved by the budget committee,” said the official.

Maeil Business Newspaper looked into parliamentary records for insights into why the proposal was dropped but found no references explaining the standing committee’s decision to reject the use of the electricity fund to alleviate KEPCO’s financial burden.

Some speculate that the proposal was abandoned midway due to a lack of legal grounds for the proposed electricity bill support for low-income households through the electricity fund.

However, the energy ministry asserts a legal basis exists under the current framework, citing Article 34 of the enforcement decree of the Electric Utility Act, which states “the universal supply of electricity.”

Earlier this month, KEPCO board members expressed opposition to the state power company shouldering the entire cost of assisting low-income households with electricity bills.