Energy advisor urges privatization of Kepco

Claude Mandil, executive director of the International Energy Agency, has urged Seoul to set out a clear plan with milestones and dates for introduction of competition in Korea’s electricity and natural gas markets, now monopolized by the government.
Mandil came to Korea yesterday to present the Paris-based international body’s 2006 review of the country’s energy policies. The IEA gives advice on energy policies of its 26 member countries, including Korea.
“The government’s original long-term plans to liberalize its electricity and natural gas markets have been put on hold,” he said. In 2001, the state-run Korea Electric Power Corp., which monopolizes the nation’s power generation and supply, spun off six subsidiaries to sell them to the private sector but the plan has been scrapped.
“Now, nobody knows what will be the ultimate situation,” Mandil said. “Such uncertainty causes problems, as market participants require confidence in government policies before making large investments.
“The most important first step is the establishment of a regulator for the liberalization procedures independent from the government,” he said.

By Moon So-young Staff Writer [symoon@joongang.co.kr]