KEPCO suffers 3.7 bil. won loss due to bad forecast

According to the results of a probe by the Board of Audit and Inspection Sunday, Korea Electric Power Corporation (KEPCO) saw substantial losses due to an inaccurate forecast of the demand for power at night.

The board informed KEPCO of these and other findings after conducting an inspection of thermoelectric and hydroelectric power plants and power transmission, and substation facilities from Sep. 25 to Oct. 18 last year.

The board pointed out that KEPCO lost about 3.7 billion won from Nov. 1999 to Feb. 2000, despite forecasting profits of about 11.5 billion won. It said KEPCO underestimated the demand for electric power at night and that demand therefore exceeded its power generating capacity.

The board spokesman said that the KEPCO actually saw about 15.2 billion won in losses, since it caused substantial night time power demand by lowering the nighttime power rate to one-quarter the level of the daytime rate. It thus had to operate high-cost gas and oil power plants.

KEPCO also spent about 17.8 billion won on labor during the period when its No. 3 and 4 turbines were shut down. The company reportedly miscalculated the length of time and labor cost until the Pusan Thermoelectric Power Plant could be reopened.

KEPCO pointed out that it expected to post 46.2 billion won more in maintenance management expenses in the future.