Government to Cover Costs of Cutting Power Bills
Despite the risk of breach of trust, the board of directors of Korea Electric Power Corp. (KEPCO) finally passed the government’s plan to cut electricity fees at a temporary meeting at the KEPCO Art Center in Seocho-gu, Seoul on June 28.
This means the board of directors overturned the “hold” decision it made on June 21 as two law firms said passing the plan would not constitute a breach of trust.
One clear reason why the board overturned its decision in a week is that the government promised to cover the estimated 284.7 billion won worth of cost that will incur when KEPCO prunes electricity bills by an average of 10,142 won in July and August in compliance with the government’s plan.
As KEPCO decided to revise the terms of the agreement on electricity charges, the government will apply a new progressive system beginning next month through a review of the bill by the Electricity Commission and its approval by the Ministry of Trade, Industry and Energy.