Delay in nuclear plants to cost W2 tril.
By Choi Kyong-ae
The state-run Korea Hydro & Nuclear Power (KHNP) is considering pursuing a major damages suit against JS Cable, an affiliate of LS Group, a major electronics-equipment conglomerate, for supplying faulty parts for use in nuclear power stations.
"We have already filed for a provisional attachment of assets held by JS Cable and "are considering filing for damages as well," a KHNP official told The Korea Times, Thursday.
The official's remarks came after the government announced Wednesday that the construction of two new reactors wouldn't be completed on time because hundreds of kilometers of cables supplied by JS proved to be faulty and must be replaced.
The Korea Times calculated that a six-month delay in the construction could cost taxpayers up to 2 trillion won ($1.9 billion).
This calculation is based on figures provided by the Korea Electric Power Corp. (KEPCO) if the 2.8 million kilowatts from the two reactors were produced by LNG-fueled plants.
The KHNP official said the faulty cable from JS Cable will likely be replaced with U.S. imports for now.
The company said that it is watching closely for any new developments.
JS Cable is the sister firm of LS Corp. and LS Cable & System, which were responsible for the closing of three of the country's 23 nuclear power stations in May when the corruption scandal first erupted. Three more are offline due to maintenance or other reasons.
Last week, public prosecutors indicted 100 suppliers and officials on corruption charges after they found that the three firms had colluded with corporate and government officials to supply substandard cable products which connected the central controlling unit with other core equipment.
Meanwhile, the delay in construction may have an impact on years-long dispute between KEPCO and civic groups over the construction of high-voltage transmission pylons.
The power lines, if completed in Miryang, South Gyeongsang Province, would connect to the state utility's new nuclear power plants in Gori, Busan. Civic groups argue that the towers could pose a health risk to local residents, who are demanding higher compensation.
On Oct. 2 when the state company resumed erecting the pylons, CEO Cho Hwan-eik said that any further delay would be unacceptable because the power lines need to be in place in order to avoid the sort of power shortages the country suffered this summer. KEPCO started the work in mid-2008 but has suffered repeated delays due to protests from local residents.
"Even if the new reactors come online later than scheduled, we will go ahead with the erection," said a KEPCO spokesman.
The latest scandal, combined with other safety issues, is said to have influenced the government decision to reduce the country's reliance on nuclear power to 22-29 percent by 2035 from the current 41 percent.
The latest energy master plan, the first under the incumbent government, has ditched new reactor construction plans that were strongly pursued by the previous government.
Instead, the administration decided to increase the use of renewable energy, a global trend that has gathered momentum following the Fukushima nuclear disaster in Japan.
By Choi Kyong-ae
 |
Koo Cha-yol |
"We have already filed for a provisional attachment of assets held by JS Cable and "are considering filing for damages as well," a KHNP official told The Korea Times, Thursday.
The official's remarks came after the government announced Wednesday that the construction of two new reactors wouldn't be completed on time because hundreds of kilometers of cables supplied by JS proved to be faulty and must be replaced.
The Korea Times calculated that a six-month delay in the construction could cost taxpayers up to 2 trillion won ($1.9 billion).
This calculation is based on figures provided by the Korea Electric Power Corp. (KEPCO) if the 2.8 million kilowatts from the two reactors were produced by LNG-fueled plants.
The KHNP official said the faulty cable from JS Cable will likely be replaced with U.S. imports for now.
The company said that it is watching closely for any new developments.
JS Cable is the sister firm of LS Corp. and LS Cable & System, which were responsible for the closing of three of the country's 23 nuclear power stations in May when the corruption scandal first erupted. Three more are offline due to maintenance or other reasons.
Last week, public prosecutors indicted 100 suppliers and officials on corruption charges after they found that the three firms had colluded with corporate and government officials to supply substandard cable products which connected the central controlling unit with other core equipment.
Meanwhile, the delay in construction may have an impact on years-long dispute between KEPCO and civic groups over the construction of high-voltage transmission pylons.
The power lines, if completed in Miryang, South Gyeongsang Province, would connect to the state utility's new nuclear power plants in Gori, Busan. Civic groups argue that the towers could pose a health risk to local residents, who are demanding higher compensation.
On Oct. 2 when the state company resumed erecting the pylons, CEO Cho Hwan-eik said that any further delay would be unacceptable because the power lines need to be in place in order to avoid the sort of power shortages the country suffered this summer. KEPCO started the work in mid-2008 but has suffered repeated delays due to protests from local residents.
"Even if the new reactors come online later than scheduled, we will go ahead with the erection," said a KEPCO spokesman.
The latest scandal, combined with other safety issues, is said to have influenced the government decision to reduce the country's reliance on nuclear power to 22-29 percent by 2035 from the current 41 percent.
The latest energy master plan, the first under the incumbent government, has ditched new reactor construction plans that were strongly pursued by the previous government.
Instead, the administration decided to increase the use of renewable energy, a global trend that has gathered momentum following the Fukushima nuclear disaster in Japan.
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