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Shin Han-ul Unit 3 and 4 passed to the next regime… Conflict embers remain

KHNP and the Ministry of Industry seem to be concerned about legal responsibility… There’s a long way to go for cost conservation

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Ministry of Trade, Industry and Energy

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(Seoul = Yonhap News) Reporter Boram Yoon = As the period of approval for the construction plan of Shin Hanul Units 3 and 4 was extended, the destiny of the two nuclear power plants was eventually passed on to the next regime.

There are criticisms that the government is trying to escape the situation as a temporary measure in order to evade responsibility while taking the point that it is against the stance of the post-nuclear policy.

On the 22nd, as the Ministry of Trade, Industry and Energy decided to extend the approval period for the construction plan of Shinhanul 3 and 4 from the 27th of this month to December 2023 at the 22nd Energy Committee, Korea Hydro & Nuclear Power (KHNP) will be The worst situation that could cause a hitch could be prevented.

KHNP was in a position to cancel the power generation project permission if the construction plan approval period was not extended.

If the power generation business license is revoked according to the Electricity Business Act, it will not be possible to enter other new power generation businesses for the next two years. KHNP is currently promoting various new and renewable projects besides nuclear power plants such as solar and wind power.

The fear of getting involved in a large-scale damages lawsuit has now been reduced.

About 790 billion won has already been invested in the construction of the site and pre-production of the main equipment for Shinhanul Units 3 and 4. Of these, KRW 492.7 billion was Doosan Heavy Industries & Construction[034020]This is the amount invested in the reactor facilities and turbine generators.

If the construction of Shinhanul Units 3 and 4 was canceled because KHNP did not get approval for the construction plan within the period, it was highly likely to file a large-scale damages lawsuit with Doosan Heavy Industries & Construction and small and medium-sized equipment companies that requested to order the main unit in advance.

The government seems to have extended the construction plan approval period this time to prevent such a situation.

In addition, it is interpreted that there is also a side of concern that the arrow that asks for responsibility will go to the Ministry of Industry.

This is because KHNP’s failure to carry out the business normally is due to the government’s energy conversion policy, so if an equipment company sues KHNP for damages, KHNP may hand it over to the Ministry of Industry.

The fact that the laws and ordinances related to the preservation of the cost of post-nuclear power plants have not yet been completed also worked.

The government is pursuing amendment of the Enforcement Decree of the Electricity Business Act to compensate for the loss of electricity business owners legally incurred due to the energy conversion policy.

When the revision is made, it is expected that if the construction of Shinhanul 3 and 4 is completely eliminated, it will be possible to compensate for losses through the Electric Power Fund. However, if the project is canceled immediately without legalization, conservation is impossible.

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Korea Hydro & Nuclear Power Headquarters
Korea Hydro & Nuclear Power Headquarters

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Although the Ministry of Industry and Industry has extended the construction plan approval period, KHNP is not able to start construction of Shinhanul 3 and 4 immediately.

This is because the construction plan must be approved by the Ministry of Industry after a construction permit from the Nuclear Safety Committee and environmental evaluation by the Ministry of Environment. It is unlikely that such a procedure will be completed within two years, with the government’s post-nuclear policy stance unchanged.

The Ministry of Industry also nailed, “The purpose of extending the period is not to resume business” in the data distributed after the meeting.

In the end, it is pointed out that the Ministry of Industry did not directly decide on the existence of Shin Hanul Units 3 and 4, but instead chose a temporary measure to turn off the fire first and then pass the responsibility to the next government.

The problem is that in this case, the damage goes back to the suppliers.

Equipment companies can take legal action, such as a lawsuit for damages, if the construction permit for Shinhanul Units 3 and 4 is completely cancelled, but there is no way to compensate for the damage if the deadline is extended and the business is not actually proceeding.

An official in the power generation industry said, “In order to maintain the domestic nuclear power plant industry ecosystem, it is necessary to resume construction of Shin Hanul Units 3 and 4 as soon as possible.”

There is also controversy over the use of the power fund to compensate for losses in KHNP due to the revision of the Enforcement Decree of the Electricity Business Act.

The Electricity Fund is accumulated by deducting 3.7% from the monthly electricity bills paid by the people. There are criticisms from the anti-nuclear war camp that the government passes on the losses caused by the nuclear power plant to the people.

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