Energy security is emerging as a critical national challenge due to climate change and the demand for electricity is increasing gradually. As renewable energy is emphasized, the number of people who want to start an electric utility business is expand...
Energy security is emerging as a critical national challenge due to climate change and the demand for electricity is increasing gradually. As renewable energy is emphasized, the number of people who want to start an electric utility business is expanding. According to the Korean Electric Utility Act, those who wish to engage in electric utility business must obtain a license. However, there is no provision in the Electricity Utility Act that allows a licensed electric business to cease operations if it later determines that the business is unprofitable or there are unavoidable circumstances that prevent it from operating. The legal nature of business license under Article 7 of the Electric Utility Act is also an issue, but more research is needed. The permits used under the current statutes have various legal characteristics, but the case law requires a precise examination. A business utility license under Article 7 of the Electric Utility Act is equivalent to a special permit or concession(Konzession). The license itself is not a property right. Still, the licensed electric business has the nature of a ‘business right’ in that it is the right to operate an electric business. Although there are conflicting views on whether such business right falls within the scope of property rights, the content related to the existence of the electric business itself falls within the scope of constitutional property rights. Severely restricting the right to operate a licensed electric business or the activities of an electric business operator is a violation of the property rights or occupational freedom of an electric business operator. The Electric Utility Act shall provide for the electric business operator’s termination of the licensed electricity business. Besides, it is necessary to introduce a provision in the Electric Utility Act that allows a business to be abolished or suspended under specific requirements. It should also stipulate a procedure for “applying” for the withdrawal of a licensed electric utility.