How effective are the measures against the energy crisis

From now on, entertainment spots will need to turn off neon signs after 11:00 P.M. and bathhouses will need to close once a week. Moreover, a 10-day system for cars will become mandatory for public workers while it will be self-promoted for civilians.

On the morning of September 15, the government proposed measures for conservation of energy at a meeting with economic ministers and chiefs of various social organizations with Prime Minister Lee Han-dong.

However, the proposed measures are being criticized as a rehash of old measures used in the past energy crisis caused by a surge in oil prices. The proposed 1 day-off system for bathhouses for instance had been abolished in August last year during a policy reform, and the government has reintroduced it in less than a year, as a measure against the rise in oil prices.

Moreover, the government plans to increase electricity charges for houses using more than 300 kwh a month. Considering that only 6.8% of houses in the entire nation use over 300kwh a month, its effectiveness is questionable.

The government has also come up with measures that make it mandatory for entertainment spots to turn off neon signs after 11.PM. Moreover, the government will restrict baseball and golf games that take place at night.

The government will test the 2-day system for cars during the Asia-Europe Meeting in Seoul, next month, and will reinforce it to the 10-day system depending on the outcome of the 2-day system.

The ministry of Commerce, Industry and Energy asserted that an annual energy saving of 170 Million dollars is possible with the 10-day system. However, considering the cost of enforcing the system, once again its effectiveness is in question. Moreover, as only 38% of public workers are showing efforts in the 10-day system, it is unsure how many civilians will participate in the system.

The government will increase electricity charges by 50% for houses that overuse electricity. The benchmark will be determined later. Also, the government plans to raise electricity charges for industries, as the current charges reflect only 78% of the cost.

At the meeting, it has been decided to increase the 5% tax deduction to 10% for investments on energy by high-electricity-using industries such as steel, cement and petrochemicals, which account for 70% of the total energy consumption. The aid funds for energy-conserving facilities will also increase from 200 billion won to 300 billion won. Moreover, the government plans to increase the availability of wind and solar powered energies by 2006 and increase the oil reservoir from 29 days to 60days worth.

Lee Myung-Jai mjlee@donga.com