Joo Han-kyu "Additional 11 Trillion Won Cost Due to Increased LNG Use Following Nuclear Phase-Out"

Lecture at the People Power Party Policy Meeting on the 27th
Jeong Seung-il, KEPCO President: "Requested Electricity Rate Hikes 10 Times Under Previous Government, Approved Only Once"

[Asia Economy Reporter Oh Ju-yeon] The People Power Party criticized the Moon Jae-in administration's energy policies, including the nuclear phase-out.

On the 27th, the People Power Party strongly condemned the nuclear phase-out policy, which was a key pledge of former President Moon Jae-in, at a policy lawmakers' meeting held in the National Assembly in the afternoon under the theme of 'Nuclear Phase-out and Electricity Rate Increase.'

At the event, Professor Joo Han-kyu of Seoul National University's Department of Nuclear Engineering, who served as the head of the energy policy division in Yoon Seok-yeol's presidential campaign, and Jeong Seung-il, CEO of Korea Electric Power Corporation (KEPCO), were invited as speakers and the session was held privately.

During his lecture, CEO Jeong reportedly stated that the previous government requested electricity rate increases 10 times but received approval only once, and that KEPCO's deficit reached nearly 30 trillion won due to delays in raising electricity rates. He further explained that if the Moon Jae-in administration had proactively raised electricity rates, the deficit would have been smaller and the impact less severe. He also mentioned that although electricity rate increases are inevitable under the Yoon Seok-yeol administration, the rate hike should be adjusted considering inflation and other factors.

Professor Joo explained in a separate lecture that an additional cost of 11 trillion won was incurred in the process of using LNG as a power source alongside base-load power generation using nuclear and coal. This led to an increase in KEPCO's deficit and ultimately to electricity rate hikes. This was because the nuclear power plant operation rate dropped from 82.7% to the mid-70% range over the past five years of the previous administration, and the reduced nuclear operation rate was compensated by LNG power generation.

Kwon Seong-dong, floor leader of the People Power Party, said, "Throughout the last administration, our party repeatedly warned about the risks of the nuclear phase-out policy," and criticized, "In Korea, rapidly increasing the share of renewable energy is not suitable given weather conditions, yet the Moon administration recklessly aimed to convert everything to renewable energy."

He added, "As a result of the nuclear phase-out, our world-class nuclear technology was neglected, manpower moved overseas, and universities were unable to train personnel," and pointed out, "KEPCO reduced the nuclear operation rate and increased the share of gas and coal power generation, which caused gas and coal prices to rise, inevitably leading to deficits."

Floor leader Kwon also said, "The electricity rate increase should have been done during the Moon Jae-in administration, but it was done only once," and added, "The previous administration made the mistakes, but the new administration is the one who has to apologize."