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Reactor operator to demand GE compensation for parts

April 23, 2015 - 20:15 By Korea Herald
The nation’s nuclear power plant operator said Thursday that it is considering demanding compensation from General Electric for having supplied faulty parts, which led to a delay in operations of two nuclear power plants in Korea.

According to the state-run Korea Hydro & Nuclear Power Co., the U.S. energy giant on April 11 recalled nine plugs used for the Shin-Kori reactor 3 and 4. The parts were known to have had thermal process once, instead of the standard twice, but do not affect the safety of the facilities, KHNP said.

Shin-Kori reactor 3 was set to launch operations in September, but the recall has disrupted the schedule.

Further, the postponement of Shin-Kori reactor 3 could inflict financial damage on KHNP.

A Korean consortium led by KHNP and Korea Electric Power Corp. is currently constructing four nuclear power plant units in the United Arab Emirates using the indigenous ARP-1400 nuclear reactor. Shin-Kori reactor 3 is the first case based on the home-grown technology.

The consortium vowed to show the reactor’s safety and performance through the operation of Shin-Kori reactor 3 by September.

Under the contact with the UAE, should Shin-Kori fail to show its performance by the designated deadline, KEPCO is entitled to pay 0.25 percent of the construction fee as penalty.

“We are still considering the extent of our damages and whether we will seek compensation. We will have to take a closer look at the contract,” a KHNP spokesman said.

By Bae Ji-sook (baejisook@heraldcorp.com)