Five Power Generation Companies Paid Over 100 Billion Won in Late Fees Last Year Due to Delayed Unloading

Namdong Power Generation 29.5 Billion Won and Total 105.3 Billion Won

[Asia Economy Reporter Moon Chaeseok] It has been revealed that five domestic power generation public enterprises paid more than 100 billion KRW in demurrage fees to shipping companies last year due to their failure to unload coal and other materials on time.

According to the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee member Lee Juhwan of the People Power Party, based on the state audit data submitted by Namdong, Nambu, Dongseo, Seobu, and Jungbu Power Generation on the 1st, they paid a total of 105.3 billion KRW in demurrage fees last year.

This amount increased compared to 57.9 billion KRW in 2016, 52.5 billion KRW in 2017, and 75.4 billion KRW in 2018. As of August this year, 55.3 billion KRW has already been paid.

By power company, the fees were Namdong Power Generation (29.5 billion KRW), Jungbu Power Generation (25.7 billion KRW), Seobu Power Generation (22.0 billion KRW), Nambu Power Generation (14.3 billion KRW), and Dongseo Power Generation (13.7 billion KRW), in that order.

The power companies cited reasons for the demurrage such as decreased demand for coal-fired power, repeated start-stop operations of power units, and the implementation of the 52-hour workweek.

Rep. Lee emphasized, "Urgent measures and implementation are necessary to prevent demurrage fees from leading to increased power generation costs and being passed on to the public."

Korea South-East Power Headquarters building. (Photo by Korea South-East Power)