[THE INVESTOR] The Seoul court on Thursday upheld a ruling that the controversial electricity power rate system is valid, amid persistent public criticism over the cumulative bill scheme.

The Seoul Central District Court ruled in favor of Korea Electric Power Corp., stating that the company’s policy terms that allow for cumulative increase of power bills along with the amount of electricity used is valid.

“It is difficult to acknowledge that the power company’s terms are legally invalid based on the evidence that the plaintiff submitted,” the verdict said.

A total of 17 electricity consumers filed a lawsuit against Kepco in 2014 to seek a refund in light of the “unfair profits” the company made through the cumulative bill system. This was the first case filed against the power company over the bill system.

Under the current power charge system, residential electricity bills are charged cumulatively based on power usage, with the top rate being 11.7 times higher than the lowest. Industries, which account for over half of the total electricity consumption of the country, are exempt from the cumulative system.

The plaintiffs said they would appeal the decision.

Rulings for eight other similar class-action lawsuits are pending, with about 8,500 individuals participating. As of early last month, 19,000 additional electricity consumers vowed to participate in the group lawsuit against Kepco soon, according to law firm Inkang.

Amid high public criticism over the power bill scheme, the government is running a task force to revamp the system. 

By Lee Hyun-jeong/The Korea Herald (rene@heraldcorp.com)