2. The costs of lawsuit are assessed against the plaintiffs.

A. The Defendant is a corporation established under the Korea Electric Power Corporation Act with the aim of ensuring the stability of the supply and demand of electricity and contributing to the development of the national economy by operating the electric utility business in a reasonable manner and supplying electricity to its customers, including the Plaintiffs in an exclusive position with the permission from the competent Minister (the Minister of Knowledge Economy before March 23, 2013, and the Minister of Trade, Industry and Energy thereafter, the Minister of Trade, Industry and Energy; hereinafter the same shall apply) under the Electric Utility Act. The Plaintiffs are the consumers of electricity supplied with electricity from

B. Upon formulating the terms and conditions of electricity rates and other supply terms and conditions under Article 16 of the Electric Utility Act and applying for approval to the competent Minister, the competent Minister has consulted with the Minister of Strategy and Finance in advance pursuant to Article 4(1) of the Price Stabilization Act and authorized the said terms and conditions after deliberation by the Electrical Affairs Commission organized by the President and appointed or commissioned by the President. The Defendant entered into an electricity supply contract under which the said terms and conditions were applied with the Plaintiffs, and specifically, the terms and conditions of the said terms and conditions of the electricity supply applied from August 6, 2012 to November 21, 2013 (the respective terms and conditions of the electricity supply, effective on January 14, 2013, and November 21, 2013; hereinafter referred to as “each of the instant terms and conditions of the electricity supply”) are as follows:

C. Foods

○ The terms and conditions of electricity supply on August 6, 2012

Table 1 A monthly electric fee table;

1. Electricity for housing;

(a) Low voltage power (consumers from 110V to 380V);

(i)basic charges;

Use of the card basic fare (kWh) 100kWh below 390 kWh below 100 kWh below the first 57.90 kWh up to 100 kWh below 120.20 kW from 20 kW from 201 to 300 kW from 100 kW below 179.40 kW from 301 to 3,680 kWh up to 100 kW from 267.80 kWh from 401 to 50 kWh from 6,970 kWh from 398.70 kW from 50 kW from 12,350 kWh from 100 kWh up to 100 kW from 100 kWh below to 100 100 kWh.

The minimum monthly rate of KRW 1,00 shall be KRW 1,350, but if the monthly amount of electric power used exceeds KRW 1,350kWh, it shall be imposed by increasing 100% of the unit price for the volume of electric power used exceeding 100kW and below 200kWh. However, in the first month, in advance of the imposition of the premium on the customer, and in the first month, the premium shall be imposed if the unit price for the re-proof fee is applied within one year from the first month or if the unit price for the re-proof fee is applied within one year from the date on which the last premium is imposed, and in the case prescribed by the detailed regulations, it shall be excluded from the subject of the surcharge.

(b) High voltage power (consumers with standard voltage of at least 3,300 V);

(i)basic charges;

Use of 105.00 kWh below 100 kWh below 390 kWh below the first 100 kWh below the 390 kWh below the 100 kWh below 105.40 kWh below 201-300 kWh up to 100 kW below 140.60 kWh up to 140.60 kWh below 301-40 kWh used from 300 kWh up to 300 kWh up to 100 kWh below 205.80 40 kWh used from 50 kWh used from 5,780 kWh below 100 kWh up to 100 kWh up to 100 kWh below 100 kW

If monthly usage volume exceeds 1,350kWh, it shall be imposed by increasing 100% of the unit price for the volume of electricity used exceeding 100kWh to 200kWh to the volume of electricity used not more than 200kWh. However, in the first month, it shall be notified in advance to the customer, and if the unit price for the rate to be increased again within one year from the first month is applicable or the unit price for the rate to be increased again within one year from the month when the last month is imposed, it shall be imposed, and if it falls under the conditions prescribed by the detailed regulations, it shall be excluded from the subject of the imposition of the premium.

○ The terms and conditions of electricity supply enforced on January 14, 2013

Table 1 A monthly electric fee table;

1. Electricity for housing;

(a) Low voltage power (consumers from 110V to 380V);

(i)basic charges;

Use of 122.60 kW from 122.60 kW from 20 kW from 100 kWh to 100 kWh from the first 400 kWh to the first 100 kWh, and 1,560 kW from 183.00 kW from 301 to 3,750 kWh from 273.20 40 kWh from 401 to 50 kWh from 100 kW from the next 100 kW from 183.0 kW from 183.20 kW from 401 to 50 kWh from 7,110 kWh from 100 kWh to 100 kWh from 400 kW from 100 kWh to 100 kW from 100

The minimum monthly rate of KRW 1,00 shall be KRW 1,350, but if the monthly amount of electric power used exceeds KRW 1,350kWh, it shall be imposed by increasing 100% of the unit price for the volume of electric power used exceeding 100kW and below 200kWh. However, in the first month, in advance of the imposition of the premium on the customer, and in the first month, the premium shall be imposed if the unit price for the re-proof fee is applied within one year from the first month or if the unit price for the re-proof fee is applied within one year from the date on which the last premium is imposed, and in the case prescribed by the detailed regulations, it shall be excluded from the subject of the surcharge.

(b) High voltage power (consumers with standard voltage of at least 3,300 V);

(i)basic charges;

Use of the card basic fare (kWh) 100kWh below 400 kWh below the first 100 kWh below the 56.10 kWh below the first 100 kWh below the 56.30 kWh up to the first 100 kWh below the 96.30 kW from 201 to 300 kWh below the second 1,230 kW below 143.40 kWh up to 100 kW from the next 100 kWh up to 301-40 kWh used from 300 kWh up to 300 kWh up to 100 kWh up to 209.90 401-50 kWh used from 500 kWh to 100 kWh up to 100 kWh.

If monthly usage volume exceeds 1,350kWh, it shall be imposed by increasing 100% of the unit price for the volume of electricity used exceeding 100kWh to 200kWh to the volume of electricity used not more than 200kWh. However, in the first month, it shall be notified in advance to the customer, and if the unit price for the rate to be increased again within one year from the first month is applicable or the unit price for the rate to be increased again within one year from the month when the last month is imposed, it shall be imposed, and if it falls under the conditions prescribed by the detailed regulations, it shall be excluded from the subject of the imposition of the premium.

○ The terms and conditions of electricity supply enforced on November 21, 2013

Table 1 A monthly electric fee table;

1. Electricity for housing;

(a) Low voltage power (consumers from 110V to 380V);

(i)basic charges;

Use of the card basic fare (kWh) 100kWh below 410 kWh below the first 100 kWh below 60.7 won up to the first 100 kWh below 125.9 won up to 100 kWh below 125.9 won up to 201-300 kWh used up to 100 kW below 187.9 won up to 100 kWh below 301-40 kWh used up to 3,850 won up to 100 kWh below 280.6 won up to 401-50 kWh used up to 7,300 kWh used up to 417.750 kWh used up to 12,500 kWh used up to 100 kWh up to 100 kWh.

The minimum monthly fee shall be 1,000 won.

(b) High voltage power (consumers with standard voltage of at least 3,300 V);

(i)basic charges;

The card basic fare (kWh) 10kWh (kWh) used below 100 kWh (kWh) used below 410 kWh from 57.6 kWh up to 100 kWh, 730 kW from 98.9 kW from 201 to 300 kWh up to 100 kW from 147.3 147 kWh up to 100 kW from 301 to 3,170 kWh from the following 100 kWh: 401 to 50 kWh used below 6,060 kWh up to 325.77 kWh used above 100 kWh from 100 kWh up to 100 kWh up to 325.750 kWh from 100 kWh.

[Reasons for Recognition] Facts without dispute, Gap evidence 1-1, 2, Gap evidence 3, Eul evidence 12-1 to 3, the purport of the whole pleadings

2. The parties' assertion

A. Summary of the plaintiffs' assertion

In interpreting the principle of trust and good faith as stipulated in Article 6 of the Act on the Regulation of Terms and Conditions (hereinafter “the Regulation of Terms and Conditions”), special circumstances of the terms and conditions of the supply of electricity different from those of the common terms and conditions, i.e., the Electricity Business Act, which is a law, provides for the contents of the terms and conditions of the supply of electricity, and completely excludes the principle of freedom of contract in the supply of electricity, and in the supply of electricity, the consent is enforced from the citizens of the electricity. The respective terms and conditions of the supply of electricity in this case are terms and conditions approved by the Government following the examination of the Electrical Affairs Commission, which are already prescribed for each item of the terms and conditions of the supply of electricity under the Electric Utility Act and provide for the classification of electricity charges by type of supply or by voltage according to the Enforcement Decree of the Electric Utility Act. The plaintiffs and the users of the electricity, including the plaintiffs, have entered into a contract with the beginning to exclude the principle of freedom of contract from the beginning. The plaintiffs's each of the terms and conditions of the supply of this case did not apply the principle of trust and good faith.

B. Summary of the defendant's assertion

The progressive system of electricity for residential use has been implemented since 1974, as well as continuously explained to the users through demands, guidance materials, etc., currently being applied by the electricity users at least 70% of the cost less than 3 stages, and only 0.05% of the total users are the users who are subject to the 7-stage progressive progressive rate, which is adopted by the plaintiff. The users who are less than the amount of electricity used through the progressive system adopted by each of the terms and conditions of electricity in this case gain profits from using the electricity at very low cost, and the application of the progressive-level differential rate system for residential use, industrial and general electricity is based on the difference between the amount of electricity used, the scale of electricity used, the scale of electricity use, and the form of use, etc., which is currently being supplied by the defendant, and the standard for the usage of the electricity in each of the terms and conditions of the housing charges in this case is no more than 6% of the plaintiffs to the defendant, even if it contains the declared contents, and it can be viewed that the standard of usage in each of the housing charges in this case is invalid.

3. Determination

A. Legal nature of each of the terms and conditions of electricity supply in this case

In order to operate the electricity business which is a public service business that supplies electricity essential to a large number of general consumers and to protect the interests of users, the Electric Utility Act requires strict procedures on the basis that the parties to the contract for supply with the general electricity service supplier and the general consumers individually agree on the terms and conditions of the contract and comply with the exclusive supply regulations, in particular, a fair and reasonable determination of public utility charges. The respective terms and conditions of the supply in this case have the nature as a general contract clause applicable to all the electricity supply contracts that are made between the general electricity service supplier and their general consumers at present and in the supply area (see Supreme Court Decisions 87Meu2792, Apr. 25, 1989; 98Da57099, Apr. 12, 2002).

B. Whether each of the instant terms and conditions of electricity for housing constitutes grounds for invalidation under Article 6 of the Act on the Regulation of Terms and Conditions

1) Relevant statutes

The entries in the attached Table-related statutes are as follows.

2) Relevant legal principles

Article 6 (1) and (2) 1 of the Act on the Regulation of Terms and Conditions (hereinafter “the Regulation of Terms and Conditions”) that is unfairly unfavorable to a customer under Article 6 (1) and (2) 1 of the Regulation of Terms and Conditions (hereinafter “the Regulation of Terms and Conditions”) to be deemed null and void on the ground that the terms and conditions are somewhat unfavorable to the customer. It is insufficient to find that the standardized contract maker abused his trade position to make out and use the standardized contract against the other party’s legitimate interests and reasonable expectations, thereby impairing the sound trade order. The determination of whether the standardized contract constitutes “an unreasonably unfavorable clause to the customer” as the grounds for invalidation of the standardized contract ought to be made by comprehensively taking into account all the circumstances such as the content and probability of disadvantages that may arise to the customer under the standardized contract, impact on the transaction process between the parties, and regulations on the related Acts and subordinate statutes (see Supreme Court en banc Decision 90Meu23899, Dec. 24, 191; 2013Da214864, Jun. 12, 2014).

3) Determination

In light of the following circumstances acknowledged in light of the facts and evidence Nos. 6-1, 2, and 10-1, 2, and 11-2 of the above basic facts and evidence Nos. 6-1, 10-2, and 11 of the evidence Nos. 6-1, and the purport of the entire pleadings, the evidence submitted by the plaintiffs alone is insufficient to deem that each of the terms and conditions of the instant housing rental fee constitutes grounds for invalidation to the extent that they lose fairness in violation of the principle of trust and good faith pursuant to Article 6 of the Regulation of Terms and Conditions Act, and there is no other evidence to support otherwise. Furthermore, the calculation of unjust enrichment on the premise that each of the terms and conditions of the instant

A) The respective terms and conditions of electricity supply of this case were authorized by the Defendant established under the Korea Electric Power Corporation Act to apply for authorization to the competent Minister, and approved by the competent Minister after consultation with the Minister of Strategy and Finance and deliberation by the Electrical Affairs Commission. The Defendant entered into a power supply contract under which the respective terms and conditions of electricity supply of

B) There is no separate provision in the Electric Utility Act regarding the calculation of electric utility charges, but the Act on the Price Stabilization provides for the calculation principle, calculation period, calculation method, etc. of public utility charges that the competent Minister shall consult with the Minister of Strategy and Finance (the competent Minister shall determine, approve, authorize or permit the projects or goods as prescribed by any other Act) (Article 4(5)).

C) According to the Enforcement Decree of the Electric Utility Act, the criteria for authorization of terms and conditions for electricity charges and other terms and conditions of supply or for modification thereof are prescribed as “the amount of electricity charges plus an adequate profit at an appropriate cost” (Article 7(1)1); and “the amount of electricity charges shall be classified by type of supply or voltage” (Article 7(1)2); and detailed matters concerning the above criteria shall be determined and publicly notified by the competent Minister (Article 7(2)); according to the Enforcement Decree of the Price Stabilization Act, public utility charges shall be determined at the level of compensating the general cost required for the provision of the pertinent project or goods (hereinafter “public services”); if the competent Minister deems it reasonable to follow another calculation method, it may follow the calculation method in consultation with the Minister of Strategy and Finance (Article 6(1)1); and the general cost shall be determined by adding the appropriate cost required for the provision of public services to the assets used in providing the pertinent public services under the premise that the provider of public services is faithfully and efficiently managed (Article 6(2)6(2)2)2).

D) According to the announcement on the detailed criteria for the permission for the electric power generation business as prescribed by the Ministry of Knowledge Economy’s notification on January 6, 2012, the Minister of Knowledge Economy, the standards for calculating electric charges, the permissible error in the electric meters and the electric power system operation business (hereinafter “the announcement on the criteria, etc. for calculating electric charges”), electric charges, in principle, shall be determined at the level where the general cost required for the supply of electricity is compensated by the general cost for the supply of electricity (Article 8(1)); however, the general cost is the amount calculated by adding the reasonable investment fee to the reasonable cost required for the supply of electricity under good faith and efficient management (Article 8(2)); the structure of the electric charges is specifically prescribed under Article 13 below the announcement on the standards for the calculation of the electric charges in this case, taking into account the type of the cost of supply, convenience, degree of social policy, and other factors, etc., the allocation of the electric utility charges should be reasonably made between consumers and the reasonable allocation of the cost of the electricity project (Article 9(1).7).

E) According to Article 9(2) of the Notice on the Calculation Standard of Electric Utility Rates, where it is deemed necessary for the efficient distribution of resources, it may be supplemented by differential charges, short-term charges, etc. In addition, there are grounds for the progressive system on the electric utility rates for housing among the respective terms and conditions of electricity supply in the instant case.

F) However, with respect to the short-term section and the short-term ratio of each of the instant housing charges, the pertinent laws and regulations do not explicitly stipulate the appropriate scope and limits in the public notice, such as the standards for calculating the electric charges, but on the record, it is difficult to find out how the total cost (the amount calculated by adding the reasonable investment fee to the reasonable fixed number) of the electric charges at the time of authorization of each of the instant electricity supply terms and conditions, and how the accumulated section and the short-term ratio were determined based on this. Therefore, it cannot be determined in detail whether the calculation of the electric charges under each of the instant housing charges in question clearly violates the standards for calculating the electric charges in accordance with the public notice, such as the standards for calculating the instant electric charges, or is deemed to have exceeded the acceptable level of admission, such as the adequate investment fee

G) Each of the instant terms and conditions of electrical charges for housing include a difference in the calculation of charges or the reduction of electric charges for specific customers who need social consideration while on the basis of the progressive system, and allow them to apply different electric charges at their option, and week 1).

H) The policy on the electrical charges of each country is set in various ways according to the social situation of that country, industrial structure, power facilities and demand for electricity, etc.

4. Conclusion

Therefore, the plaintiffs' claims of this case are dismissed as it is without merit. It is so decided as per Disposition.

[Separate] Relevant Acts and subordinate statutes: omitted

Judges Jeong Woo

(1) The basic charges and charges for the services of the persons of distinguished services to the national independence under the provisions of Article 67 (Calculation of Fees) (2) shall be calculated every one month according to the respective rates of the contract for the use of the electricity for the first-class household under the provisions of Article 67 (1) 1, 3 or 4 (Calculation of the Charges for the Housing of the Persons of Distinguished Services to the National Health Insurance Act). The charges for the services of the persons of distinguished services to the national independence under the provisions of Article 67-2 (1) 3 (Calculation of the Charges for the Housing of the Persons of Distinguished Services to the National Health Insurance) shall be calculated according to the Acts and subordinate statutes for the first-class household of the persons of distinguished services to the national independence: