[THE INVESTOR] Power prices could rise by 97 percent if the government opens the nation’s state-controlled energy supply market to the private sector, according to a study released on June 27.

If the retail power market is privatized, electricity prices may drop in the initial phase but will rise continually, according to the report on major global economies’ policies related to the electricity supply. 

Under the plan announced on June 14 by the Ministry of Trade, Industry and Energy, the country plans to open areas monopolized by public organizations to the private sector as part of comprehensive restructuring plans for public firms accused of inefficient management and high debt levels.

Rep. Yoon Han-hong of the ruling Saenuri Party said that the privatization plan could end up failing like past administrations did without securing consensus from citizens. 

“The ministry hasn’t provided any answers to the people’ s doubts and concerns on price hike and decline in service quality through empirical research,” he said.

In the UK, for example, the power prices went down as private firms sip plied gas from the North Sea in early days but the rate surged up to 97 percent between 2003 and 2011, the report showed.

By Park Han-na (hnpark@heraldcorp.com)