Citizens mull class action against KEPCO over blackout

By Lee Hyo-sik

Residents and businesses that suffered from the unprecedented nationwide rolling power outage Thursday are moving to file a class-action suit against the state-run electricity monopoly, seeking compensation.

Among the biggest victims were owners of restaurants and other retail businesses. They are expected to take the lead in the lawsuit against the Korea Electric Power Corp. (KEPCO), which cut off electricity to them without prior notice, to recoup financial losses as a result of the blackouts.

However, KEPCO officials say the electricity outage was unavoidable because it was caused by unseasonably high power demand, adding they, along with the Korea Power Exchange (KPX), cannot be held responsible for what happened. KPX coordinates power supply across the country.

According to the Seoul Metropolitan Fire and Disaster Headquarters and other emergency service centers across the country Friday, nearly 3,000 citizens nationwide were trapped in elevators for hours due to the outages, as dozens of motorists were involved in accidents as traffic lights failed.

Hundreds of restaurants had to throw away food ingredients and turn customers away as refrigerators and other electronic devices stopped working. In particular, those who operate eateries that serve live fish and other easily-perishable food items were hit harder.

Across the country, fish farmers saw their fish perish as they were unable to provide oxygen into cultivation tanks because of the power loss, while industrial plants were forced to stop operating, incurring huge financial losses.

Thousands of twitters and other social network service (SNS) users have expressed their anger against KEPCO.

Tweeter with Twitter ID “@Shinok****” posted a line, “My aunt said she will sue the state electricity supplier because the power outage ruined her restaurant business Thursday.”

Another tweeter with ID “@soonm****” said when the power went out, he was working on a laptop. “I will file a complaint against KEPCO if my document work is lost as a result of the blackout.”

Additionally, the Citizens’ Coalition for Economic Justice issued a statement Friday, saying that it will file a class-action lawsuit against KEPCO on behalf of citizens who suffered from the power outage.

“More than 1.6 million households nationwide grappled with power failure. As Minister of Knowledge Economy Choi Joong-kyung admitted, KEPCO failed to predict the electricity demand. It also did not abide by an emergency manual and unilaterally cut off electricity without consulting with relevant state bodies,” the civic group said.

It urged the government and KEPCO to issue a public apology and properly compensate those who suffered from the blackout.

“If they do not live up to public expectations, we will initiate a class-action suit,” the group said, urging citizens to file their suits on its website (www.ccej.or.kr).

However, the Ministry of Knowledge Economy and KEPCO said the power failure was beyond their control so that they cannot be held responsible for it.

“Due to unexpectedly high power demand, the reserve electricity dropped Thursday afternoon so sharply that KPX had to ask KEPCO to cut off electricity. We decided to do so to prevent a full-scale blackout,” a ministry official said. He said all actions were taken in line with emergency manuals.

Under KEPCO’s policy terms, it can suspend or limit power supply when it is deemed inevitable.

Even if KEPCO is held accountable, the amount of compensation will be minimal.

Under the law, those who suffered monetary loss from power failure can get only up to three times electricity charges. It means if an average household grapples with a five-hour blackout, it will be given only 800 won (73 cents) in compensation.