According to the analysis of last year's power sales volume, the Ministry of Knowledge & Economy (MKE) announced that power sales volume was high in the first half of the year and low in the second half depending upon economic conditions.

In the first half of the year, economic recovery from 2010 continued to maintain high power sales. These sales diminished in the second half of the year due to a constricted global economy including the financial crisis in Europe.

Specifically, sales increased 6.6% from January through June and 3.1% from July through December, indicating a decrease in sales growth. Compared with 2010, sales surged 4.8% to a record 455.1billion kWh.

Annual power market trading volumes in 2011 climbed 4.2% on the year-to-year basis from 440.9billion kWh to 459.5billion kWh, and the average system marginal price (SMP) rose 7.5%yoy from KRW117.77/kWh to KRW126.63/kWh. The settled unit price increased 9.2%yoy from KRW73.09/kWh to KRW79.81/kWh.

Meanwhile, MKE announced that the monthly power sales volume in December 2011 increased 1.0%yoy to 39.67billion kWh.

This meager increase stemmed from: 1) impact from the global economic slowdown; 2) promotion of energy saving measures; and 3) decline in heating demands thanks to higher-than-average temperatures.

December’s industrial power sales surged 3.2%yoy, commercial sales dipped 0.3%yoy, and residential sales 0.3%yoy. December’s trading volume picked up 1.5%yoy to KRW42.67bn/kWh.

December’s SMP went up 11.6%yoy from KRW131.4/kWh to KRW146.6/kWh. The settled unit price increased 19.2%yoy from KRW75.8/kWh to KRW90.4/kWh.

MKE concluded increases in SMP were attributable to increased fuel cost(unit : KRW/Gcal) such as LNG, oil and bituminous coal.