The Commerce, Industry and Energy Ministry said Friday the Electricity Business Law which was promulgated Dec. 23 last year will come into effect Saturday.

The law will allow the Korea Electric Power Corp. (KEPCO) to spin off units including power generation, distribution and sales aimed at restructuring the power industry.

Under the law, the ministry will set up the power exchange, a non-profit organization, to deal with the sale of electricity and work out regulations governing the electricity market so that electricity distribution will be made through competitive bidding.

The ministry will also set up an electricity committee to focus on the protection of consumers and watch the market to ensure fair competition in the power industry.

It will also set up the power industry foundation fund for various projects that KEPCO will leave unfinished including the farm-fishery village electrification project, the development of power technology and subsidies to the anthracite coal and the LNG industries.