Forum of Moon Administration Alumni: "Nuclear Phase-Out Heating Cost Bomb? ... Baseless Blame Shifting"

"Kepco Deficit Due to Soaring International Oil Prices"

[Asia Economy Reporter Park Hyun-joo] The policy forum Sajae, composed of figures from the Moon Jae-in administration, directly refuted the Yoon Suk-yeol administration's claim on the 26th that the surge in heating costs was due to the nuclear phase-out policy.

Sajae posted on Facebook that day, stating, "The consecutive increases in electricity and gas prices, the reduction of energy support budgets for the underprivileged, and the belated introduction of additional support measures are all policy decisions of the Yoon Suk-yeol administration," and criticized, "Shifting responsibility with false claims does not absolve one's own responsibility nor solve the livelihood issues."

Sajae emphasized, "The claim that the Moon Jae-in administration's nuclear phase-out policy caused the heating cost explosion is false," adding, "The Moon administration's energy transition policy was a mid-to-long-term roadmap aimed at strengthening the international competitiveness of our country's industry and moving toward a carbon-neutral society, which is a global trend. Labeling this collectively as a 'nuclear phase-out' policy is a clear distortion."

Sajae explained, "The nuclear power plant operation rate, which reached 85.9% in 2015, fell to 66.5% in 2018," and added, "This was due to multiple cases of defective nuclear power plant component deliveries and frequent shutdowns of nuclear plants for safety inspections." Furthermore, they claimed, "With the completion of safety inspections and the resumption of full-scale nuclear plant operations during the Moon administration, the nuclear power plant operation rate steadily increased to 81.1% in 2022."

At the 'Forum Sa-ui-jae Founding Press Conference' held at the Seoul Press Center on the 18th, former Prime Minister Chung Sye-kyun, former Minister of Health and Welfare Park Neung-hoo, and other officials from the Moon Jae-in administration are taking a commemorative photo.
[Image source=Yonhap News]

They also refuted the claim that the Moon administration's nuclear phase-out policy increased Korea Electric Power Corporation's (KEPCO) deficit. Sajae conveyed, "In October last year, the National Assembly Legislative Research Office released an analysis stating, 'KEPCO's profitability is statistically significantly related to electricity sales prices and international oil prices, but not related to nuclear power utilization rates.'"

They continued, "It is a well-known fact that KEPCO's business performance is influenced by international oil prices," pointing out, "In fact, in 2021 (76.0%) and 2022 (81.1%), when nuclear power plant operation rates rose, KEPCO experienced significant operating losses. This was due to the sharp rise in international oil prices during that period."

They further argued, "Minimizing electricity and gas price increases during the Moon administration was a policy decision to protect the underprivileged and small-scale self-employed and small businesses," adding, "It is the state's natural duty to alleviate their burdens and support them to overcome crises."

Regarding electricity price adjustments, they stated, "From a mid-to-long-term perspective, adjustments should be made within a range that the public can bear while maintaining KEPCO's appropriate profitability." Sajae said, "It is neither feasible nor desirable to immediately reflect the deterioration of KEPCO's revenue structure due to the surge in international oil prices in a large increase in electricity prices," and added, "Considering that KEPCO will generate continuous profits at the adjusted rates once international oil prices stabilize, adjustments should be made gradually at a reasonable level."