The Seoul court on Thursday upheld a ruling that the controversial electricity power rate system is valid, amid persistent public criticism over the cumulative bill scheme.

The Seoul Central District Court ruled in favor of Korea Electric Power Corp stating that the company’s policy terms that allow the cumulative increase of power bills along with the amount of electricity used is valid.


“It is difficult to acknowledge that the power company’s terms are legally invalid based on the evidence that the plaintiff submitted,” the verdict said.

A total of 17 electricity consumers filed a lawsuit against Kepco in 2014 to seek a refund in light of the “unfair profits” that the company has made through the cumulative bill system. This is the first case filed against the power company over the bill system.

Under the current power charge system, the residential electricity bill is charged cumulatively based on the power use amount, with the top rate being 11.7 times higher than the lowest rate. Industries, which account for over half of the total electricity consumption of the country, are exempt from the cumulative system.

The plaintiffs said they would appeal the decision.

Rulings for eight other similar class-action lawsuits are pending, with about 8,500 individuals participating. As of early last month, 19,000 additional electricity consumers vowed to participate in the group lawsuit against Kepco soon, according to law firm Inkang.

Amid high public criticism over the power bill scheme, the government is running a taskforce team to revamp the system.

By Lee Hyun-jeong  (rene@heraldcorp.com)