SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
5.6 Electricity Distribution System Charges and Terms of Service The Electric Utility Act stipulates the provisions for the transmission facilities and the distribution facilities in parallel and applies the same rules. See 4.6 Transmis- sion Charges and Terms of Service for details. Whilst MCEE provided a notice for the “standard for calculation of distributed electricity usage fee”, sepa- rate from the notice for the “standard for calculation of transmitted electricity usage fee”, the contents are nearly identical. Thus, the explanation for “transmis- sion” of electricity in 4.6 Transmission Charges and Terms of Service can be read as “distribution” of elec- tricity.
However, projects recognised as serving public ben- efit under the Land Compensation Act and the Electric Utility Act – for which the acquisition, acceptance or use of the land are recognised – are treated as busi- nesses installing electric facilities for the electricity business. As the electricity business and installation of electric facilities include the electricity distribu- tion business and electricity distribution facilities, the same procedure for securing business sites for elec- tricity generation facilities also applies to distribution facilities. See 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities . 5.5 Monopoly Rights for Electricity Distribution Entities Unlike countries such as Japan, the UK, France and the USA, where the transmission/distribution market has a regionally monopolistic structure, the South Korean distribution market is also dominated by KEP- CO (that is, it is not a regional monopoly but oper- ates under an exclusive structure where KEPCO is the exclusive operator of the entire transmission market in South Korea). See 4.5 Monopoly Rights to Provide Transmission Services .
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