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Disputes are rising over compensation after an unprecedented power failure swept the nation on Thursday.
Seoul and many other parts of Korea suffered serial power cuts after a sudden hike in electricity consumption.
Unlike large companies with an independent power operating system, smaller businesses, especially manufacturers, experienced problems in operations.
In an industrial park in Daegu, nearly 80 percent of some 2,600 companies suffered from the blackout. Because power supply was stopped without any earlier notice, no company could respond to it, industry sources said.
“The abrupt power cuts caused 10 to 40 million won in damages per company. The total damage could exceed at least 20 billion won,” said a source familiar with the matter.
Another industrial complex in Chungju, North Chungcheong Province, also reported its estimated damages to be at least 2 billion won at 21 companies there.
A manufacturing company producing solar energy material suffered 1.5 billion won in damages.
“The amount of direct and indirect damages could soar. We will respond to it following the government’s action,” he said.
Despite damage claims by manufacturing companies and angry citizens, the government reiterated Friday that “the 30-minute serial blackout was irresistible and no one can be blamed for it.”
“We have yet to receive any serious damage report and expect no further problems,” said an official of the Ministry of Knowledge Economy, which handles energy affairs.
“This is unprecedented. We have no previous reference to look at. We will take follow-up actions along with the Korea Power Corp. and Korea Power Exchange.”
Under the state-run power company’s policy, it has immunity from compensation when a problem is caused not by the clear fault of the company.
The policy also allows the company to suspend or limit power supply when unavoidable cases such as the sudden spike in electricity consumption.
Even when any problem is found, the fines are limited to the three-fold amount of the normal electricity rates during the supply suspension.
For individual victims, the damage cost would be just 800 won, but the amount could increase when it comes to large manufacturing factories.
The ministry said it will launch an investigation into damages across the nation and take follow-up actions, along with the Korea Power Corp.
Knowledge Economy Minister Choi Joong-kyung, however, hinted at finding ways to compensate victims during a parliamentary speech on Friday.
“I think Thursday’s power suspension can be discussed separately from the KEPCO policy. I’ll give positive consideration for compensation,” he said.
By Lee Ji-yoon (jylee@heraldcorp.com)
Seoul and many other parts of Korea suffered serial power cuts after a sudden hike in electricity consumption.
Unlike large companies with an independent power operating system, smaller businesses, especially manufacturers, experienced problems in operations.
In an industrial park in Daegu, nearly 80 percent of some 2,600 companies suffered from the blackout. Because power supply was stopped without any earlier notice, no company could respond to it, industry sources said.
“The abrupt power cuts caused 10 to 40 million won in damages per company. The total damage could exceed at least 20 billion won,” said a source familiar with the matter.
Another industrial complex in Chungju, North Chungcheong Province, also reported its estimated damages to be at least 2 billion won at 21 companies there.
A manufacturing company producing solar energy material suffered 1.5 billion won in damages.
“The amount of direct and indirect damages could soar. We will respond to it following the government’s action,” he said.
Despite damage claims by manufacturing companies and angry citizens, the government reiterated Friday that “the 30-minute serial blackout was irresistible and no one can be blamed for it.”
“We have yet to receive any serious damage report and expect no further problems,” said an official of the Ministry of Knowledge Economy, which handles energy affairs.
“This is unprecedented. We have no previous reference to look at. We will take follow-up actions along with the Korea Power Corp. and Korea Power Exchange.”
Under the state-run power company’s policy, it has immunity from compensation when a problem is caused not by the clear fault of the company.
The policy also allows the company to suspend or limit power supply when unavoidable cases such as the sudden spike in electricity consumption.
Even when any problem is found, the fines are limited to the three-fold amount of the normal electricity rates during the supply suspension.
For individual victims, the damage cost would be just 800 won, but the amount could increase when it comes to large manufacturing factories.
The ministry said it will launch an investigation into damages across the nation and take follow-up actions, along with the Korea Power Corp.
Knowledge Economy Minister Choi Joong-kyung, however, hinted at finding ways to compensate victims during a parliamentary speech on Friday.
“I think Thursday’s power suspension can be discussed separately from the KEPCO policy. I’ll give positive consideration for compensation,” he said.
By Lee Ji-yoon (jylee@heraldcorp.com)
