It will be a hotter-than-average summer in South Korean offices this summer if companies comply with energy-saving measures the government is implementing to avert power disruptions following the sudden shutdown of two nuclear reactors this week after it was ascertained that they were operating with fabricated certificates for some components.

The Ministry of Trade, Industry and Energy announced the measures Friday, requiring all public offices to cut electricity use by as much as 20% this summer and urging large electricity consumers, mostly manufacturers and operators of large buildings, to follow suit.

Households will be offered incentives, such as cuts in utility bills, if they significantly reduce power consumption, the ministry said.

The shutdowns at the two one-gigawatt reactors will likely push the country's power supply below demand. Delayed restarts at two other reactors, also due to faked certificates, will exacerbate the problem.

"Unprecedented power shortages are expected during the summer because of the halts of the nuclear reactors," the ministry said.

The last time South Korea faced a serious power shortage, it was a result of excessive power demand during an unusual surge of late summer heat on Sept. 15, 2011 that prompted occupants to turn up their air conditioning. Millions of households and other premises were hit with rolling blackouts for several hours, narrowly averting a nationwide complete blackout. The episode led to the resignation of the country's commerce minister, who is in charge of energy issues.

The move to control demand through energy conservation follows the government's decision Tuesday to stop operations at the two reactors and delayed the restarts at the other two after an investigation confirmed that the facilities were using control cables whose safety certificates had been fabricated.

It will take at least four months to replace the cables at the reactors, which are operated by state-run Korea Electric Power Corp. (015760.SE), the government said.

Two separate reactors were also shut last November after it was determined that they were operating with faked certificates. The results of the latest investigation deal another blow to the administration of President Park Geun-hye, who has been plagued by scandals, including an alleged sexual assault involving one of her press secretaries.

Prime Minister Chung Hong-Won Friday vowed tough penalties for people involved in the documentation fabrications.

Trade, Industry and Energy Minister Yoon Sang-jick returned home Wednesday to deal with the reactor scandal, cutting short a trip to the United Arab Emirates, where he attended a groundbreaking event for a South Korean-built reactor.

Tuesday's shutdown leaves 10 of South Korea 's 23 reactors out of operation for a variety of reasons, including regular maintenance and safety concerns.

The ministry said power supply this summer will total around 77 gigawatts compared with 80 gigawatts projected before the closure and a demand projection of 79 gigawatts.

Analysts said Korean power companies may have to ramp up imports of overseas fossil fuels, including natural gas, to make up the shortfall.

The country's imports of liquefied natural gas were up 13% in value terms to $3.13 billion in April, government data show.

"The stoppages are credit-negative for Korea Electric mainly because its reliance on expensive liquefied natural gas is likely to increase to make up for the lost nuclear production," said Mic Kang, a Moody's Investors Service analyst. "The company will also face higher execution risks in constructing and commissioning new nuclear reactors because of the heightened safety concerns."

The government is determined to push ahead with its plan to aggressively build more nuclear power plants, despite the risks.

In a report to President Park early this week, the commerce ministry said it would stick with its schedule of building 11 more nuclear reactors by 2024 to meet rising power demand.

"The latest incident is a clear negative for Korea and its nuclear-power builders," said Kim Sang-ku, an analyst at Kiwoom Securities, adding that this doesn't mean the government will back away from "price-competitive nuclear energy."

South Korea is committed to nuclear energy for another reason: exports .

The country has for years been vying against bigger rivals, including Japan , in pursuit of global nuclear projects. In December 2009, Seoul won the UAE contract, for $20 billion, to build four reactors. It was its first overseas reactor contract.

Officials at the commerce ministry and Korea Electric have said they are in talks to export nuclear reactors to several countries, including Finland , Vietnam and Saudi Arabia . The latest development won't negatively affect their negotiations, they said Thursday.

Διαβάστε ακόμα