USFK's unpaid electricity bill nears $2 million this year

By Jun Ji-hye

The U.S. Forces Korea (USFK) failed to pay a portion of its seven-month electricity bill that nears $2 million, said an opposition lawmaker, Sunday.

However, it was exempt from late payment fees thanks to a contract reached with the Korea Electric Power Corporation (KEPCO) in 1962.

According to Rep. Lee Chan-yeol of the main opposition Minjoo Party of Korea, the USFK’s unpaid electricity costs ― from January to July of this year ― were 1.99 billion won ($1.8 million). These missed payments warranted 55 million won in arrears charges alone, but the USFK did not pay this as it is exempt from paying fines under the terms and conditions of a contract signed with the KEPCO, Lee said.

Signed in 1962, the contract stipulates that the KEPCO will not charge the USFK fines and penalties or interest.

The third-term lawmaker, who belongs to the National Assembly Trade, Industry and Energy Committee, noted that the USFK also enjoys a lower rate per kilowatt-hour (kWh) compared to the Korean military and residents.

The rate for the USFK is 106.94 won per kWh, compared to 122.28 won for the Korean armed forces, 123.69 won for residents and 107.41 won for businesses.

But U.S. soldiers used 23,953 kWh per person last year, nearly 10 times the use rate of Korean soldiers, who used 2,534 kWh per head.

The USFK initially had the same kWh rate as businesses, but KEPCO decided to apply the average customer rate from the previous year in December 2003 following controversy over awarding it special benefits.

KEPCO comes up with the average figure, and the Korea-U.S. joint committee on the State of Forces Agreement (SOFA) gives it a final review. Until the committee approves of the rate, the USFK only has to pay electricity costs based on the previous rate, which generally tends to be lower.

“The Ministry of Trade, Industry and Energy needs to renew the contract for the electric power supply to the USFK as 50 years have elapsed since the signing,” Lee said. “The ministry also needs to work on supplementing the content of the SOFA that is inadequate.”