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The Audit and Inspection Board announced on the 20th that the economic assessment, which was the basis for the early closure of Korea Hydro & Nuclear Power’s Wolsong Unit 1, was unreasonably undervalued. However, he added that there is a limit to seeing it as a comprehensive judgment on the validity of the decision to close Wolsong’s first unit, as this audit focused on the adequacy of the economic evaluation.
In the audit report released the same day, the audit report stated: “In accordance with the resolution of the (KHNP) board of directors, the decision to immediately close Wolseong Unit 1 comprehensively considered the stability and regional swimming, in addition to economic viability. Therefore, there is a limit to seeing the results of this audit as a comprehensive judgment on the validity of the decision to immediately close Wolsong Unit 1, ”he said.
Lower sales income and higher labor costs.
The Board of Audit and Inspection said electricity sales revenue was estimated to be low when KHNP continued to operate Wolseong Unit 1 reflecting the service report that KHNP had set below the actual unit price at the time of assessing the economic viability of the early closure of Wolseong Unit 1.
Additionally, he explained that the cost of Wolseong Unit 1 was overestimated, which was reflected in the economic feasibility assessment, such as labor and repair costs, which would decrease when the unit is immediately shut down. Consequently, the Board of Audit and Inspection considered the economic viability of continuing the operation of Wolseong Unit 1 to be unreasonably low.
What is the feasibility of early closure? I don’t judge
The Board of Audit and Inspection did not pass judgment on the validity of the decision to close Wolsong Unit 1 early, which was the purpose of this audit. The Audit and Inspection Board said: “The process of the decision to immediately close Unit 1 of Wolsong and the adequacy of the economic evaluation were inspected,” and said: “Issues such as safety and regional acceptance (of Unit 1 of Wolsong) were excluded from the scope of the audit. ” It added that the Moon Jae-in administration’s power conversion policy, which decided to promote the early closure of Wolseong Unit 1, was not within the scope of the audit.
The Ministry of Industry removes related documents before the audit
The Board of Audit and Inspection did not take action such as prosecuting investigative agencies against those who participated in the decision to close Wolseong Unit 1 prematurely. The audit data will be used in personnel data for re-employment and rewards for reasons such as former Minister of Commerce, Industry and Energy Paik Woon-gyu and the Korea Nuclear and Hydropower Council were involved in undermining the credibility of the economic assessment of Wolsong Unit 1 in the early closure decision process. He decided to notify the authorities.
In addition, in preparation for the Wolseong Unit 1 audit, a disciplinary request was submitted to the Ministry of Industry for the removal of related data or to the Ministry of Industry officials. Meanwhile, the Board of Audit and Inspection concluded that it is difficult to assume that the directors’ decision to early closure of Wolseong Unit 1 by Suwon Han constitutes a resignation.
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