KEPCO Loses Lawsuit Over Water Leak: Responsibility for Unchecked Leak Confirmed

Korea Electric Power Corporation (KEPCO) filed a lawsuit to cancel a water bill imposed due to a pipe leak at one of its unmanned facilities.

Korea Electric Power Corporation (KEPCO) filed a lawsuit to cancel a water bill imposed due to a pipe leak at one of its unmanned facilities. Despite receiving a reduction in the bill, KEPCO argued that they should not be responsible for the remaining amount. However, the court ruled against KEPCO, highlighting the company's failure to properly manage the facility and detect the leak in time.

KEPCO was hit with a massive water bill of around 70 million won for a water pipe leak at its unmanned facility located in Jung-gu, Seoul. Initially, the water usage had skyrocketed from 416㎥ in August 2022 to over 21,668㎥ in just over a year, leading the water authority to issue a bill for both water and sewage services.

After identifying that the reason for the extreme water usage was due to a buried pipe leak, KEPCO applied for a discount and had the bill reduced to 14.8 million won. However, KEPCO sought further reductions, filing a lawsuit to cancel the remaining amount. The company argued that the Seoul water authority had failed to conduct on-site meter inspections for over a year and did not replace the aging meter, which had been due for replacement since 2017. KEPCO contended that these failures prevented early detection of the leak.

However, the Seoul Administrative Court rejected KEPCO's claims. The court found that the responsibility for detecting the leak rested primarily with KEPCO. Although the water authority had attempted to conduct inspections, they were unable to do so due to the lack of on-site personnel. An inspection notice had been left at the site, which the court found sufficient under the circumstances.

The court further stated that the water authority had already significantly reduced KEPCO’s bill, including waiving over 40 million won in sewage charges. There was no legal basis for further reductions given that the leak occurred due to KEPCO’s failure to manage the facility effectively.

This case serves as a reminder of the importance of diligent facility management, even for large organizations like KEPCO. The court's ruling emphasized that responsibility for maintaining and managing infrastructure, including detecting leaks, lies with the facility owner. KEPCO's loss in this lawsuit highlights the consequences of neglecting routine inspections and timely repairs.