KOREA POWER EXCHANGE

Electricity Market Operation Council

The Council
Is an organization that makes objective and fair decisions on the individual issues related to the Electricity Market Operation Rules that need careful considerations in revising or setting up procedures

The members of the council are comprised in such way that they are able to listen to both the opinions
of the stakeholders and the objective opinions of the experts in the relevant fields in a balanced way, as well as take the government’s policymaking directions into account.

Rule Revision Committee

This committee is KPX’s most notable council, where the revisions to the market rules are reviewed and decided upon.
The Electricity Market Operation Rules is the most important set of rules that define the standards, procedures, and the methods of operating the electricity market.
Drafts of the rule revision can be submitted by both the relevant teams at KPX and the member companies, and the committee can recommend the decision to revise.
The committee has nine members in total including the chairman held by the CEO of KPX. Representatives of the member companies and the independent experts each hold four seats.

Cost Evaluation Committee

Relevant factors are evaluated in a fair and transparent manner at this committee.
The current electricity market is a Cost Based Pool, so the basis of the market price is the generation costs calculated from each generator’s variable costs.
The committee is essentially an expert panel that executes this cost evaluation function. Meetings are held regularly every month, and has eight members including the chairman.

Dispute Mediation Committee

This committee resolves various disputes arising from KPX’s electricity market operation and power system operation.
Unlike other committees, it is not a permanent one. When there is a dispute, three persons from a pool of members managed by KPX are chosen by the parties involved in the dispute to comprise and operate the committee.
Currently, 24 experts from the power industry with the background in law, electrical engineering, accounting, and economics make up the pool.