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“The Energy Pricing System Needs to be Revised”

worldenergy | Nov.26.2012 | The News > Korea | read: 1,745

The KEEI hosted an energy industry development strategy forum where former Vice Minister of Knowledge Economy Lee Jae-hun argued for the need to revise the current energy pricing system. 

“The government should evaluate the energy pricing system on a regular basis.”

Former Vice Minister of Knowledge Economy Lee Jae-hun stated at the ‘Energy Industry Development Strategy forum’ held on November 20, hosted by the Korea Energy Economics Institute (KEEI, President: Kim Jin-u).

During the keynote speech, former Vice Minister Lee Jae-hun said, “In any case, the government seems neither to completely intervene with energy prices nor be detached about the issue. What is necessary is to divide the energy pricing system into 3 steps.”

Former Vice Minister Lee Jae-hun continued, “Production costs should be reflected in the energy price, and proper reward for investment should always be considered for private companies. Furthermore, the government needs to set up a pricing policy for managing the demand for energy, by establishing a pricing system based on various phases of the market.”

Former Vice Minister Lee Jae-hun added, “Since energy has the characteristics of both a private and public good, the government needs to control the pace of the pricing system to some extent, while simultaneously entrusting a certain ability for private companies to control price. The energy business is a network-based industry where mutual communication between the parties involved is important.”

So, Former Vice Minister Lee Jae-hun stressed that it is important to train specialists in pertinent areas of the industry.

In his introductory remarks, President Kim Jin-u of the KEEI said, “Your trust and support enabled the KEEI to begin a senior manager education course. The course of educating senior managers in the energy industry is one of the major human resource training programs of the KEEI.”

“The forum will provide a chance for management to review the past and present of energy policies of the institute and predict the future market. I hope it will serve as an opportunity for trends of new energies to be grasped, valuable information shared, and strong networks built among participants,” added President Kim Jin-u.

At the forum, President Kim Jin-u of the KEEI presented a paper on the direction of the government’s energy policies and strategies, and President Kim Hi-jib of Accenture presented a paper on the progresses in development of shale gas and its impact on the industry.

source: todayenergy

Business, KEEI, Shale Gas, System
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