Payment for Power Company without Operation

Nuclear Regulation Authority (NRA) started the process for unprecedented denial of resumption of a reactor of nuclear power plant owned by Japan Atomic Power Company (JAPC). JAPC has received payment for maintenance of its facilities from local power companies, despite supplying no electric power. Having no reactor operating, it is skeptical that the profit is appropriate income of a power company. 

JAPC was established in 1957 as a company, with investment of nine domestic major power companies, for wholesaling electric power produced by nuclear power generation. Among JAPC’s four reactors, one in Tokai Nuclear Power Plant in Ibaraki and #1 in Tsuruga Nuclear Power Plant in Fukui are in the process of dismantlement. Reactor #2 in Tsuruga and another in Tokai Daini Nuclear Power Plant stopped their operation after the severe accident in Fukushima Daiichi Nuclear Power Plant.

 

NRA concluded in July that the reactor #2 in Tsuruga would not pass the safety regulation for resumption of its operation, due to an active fault underground of the site. NRA began to write a report about the examination, which will be approved later this month and officially dismiss JAPC’s request for resumption in October. Although JAPC is going to make further effort on the fault, NRA is not interested in it.

 

The main income of JAPC is “basic payment” from its clients which are five power company of Tokyo, Tohoku, Chubu, Kansai and Hokuriku. Basic payment is calculated based on cost for maintenance of nuclear power plants. The five power companies need to pay for the cost, even if JAPC does not operate any nuclear reactors. According to a news report of Nikkei Shimbun, five power companies have paid 1.4 trillion yen for basic payment in these thirteen years.

 

It is strange that JAPC produces profit when it does not operate any reactor. The greatest supporter for JAPC is Tokyo Electric Power Company (TEPCO). TEPCO has been paying 55 billion yen for basic payment every year. Mainichi Shimbun revealed that TEPCO has paid additional 140 billion yen for safety measures between fiscal year 2021 and 2023.

 

The payment was regarded as advance payment for future provision of electricity produced by nuclear power plants. However, JAPC has no prospect for resumption of its nuclear reactors. It is unclear how JAPC, as a power company specialized in nuclear power generation, is going to provide electricity.

 

TEPCO has been adding the cost for basic payment for JAPC on utility fee for its users. While it has not added the cost for safety measures on the fee, it is possible that it will be paid by the users in the future. In short, the users have been paying cost for a nuclear power company which did not produce nuclear power at all. Although JAPC explains that it is abiding by legal requirements, shareholders of TEPCO may be frustrated with the system.

Comments

Post a Comment

Popular posts from this blog

Amendment of Local Autonomy Law

The House of Representatives started discussion on revision of the Local Autonomy Law, which would vest the national government a power to instruct local government in an emergency. It may change the relationship between the national and local government, which has been recognized as equal. The opposition parties oppose the amendment, arguing that it would give the national government an excessive power.   With the Meiji Restoration, the national government abolished the feudal system, introducing modern governance. However, its autonomy was not sufficient. The governor of each prefecture was appointed by the national government. The local governments subordinated to the national government. It was as late as 2000 when  the Comprehensive Decentralization Law  was enacted and the relationship between the national and local government was defined as equal.   The national government found inconvenience in the relationship between the national and local government, when ...
Read more

Request for Final Nuclear Disposal Site

Ministry of Economy, Trade and Industry requested Genkai Town, Saga, to accept “literature survey” for building a final disposal site for high-level radioactive waste. Genkai is going to answer within this month. If it accepts, it will be the third place to accept that survey, following two places in Hokkaido. Main reason to accept the survey is supposed to be subsidy from the national government.   Japan has no final disposal site. Among all 54 reactors in 17 nuclear power generation plant, 12 reactors of 6 plants are operating. The rest of them are not in operation, some of which are determined to be decommissioned. Used nuclear fuels are stocked in each plant, 　 or have sent to a reprocessing plant in Rokkasho, Aomori. There are two plans to stock nuclear wastes in the intermediate facility for disposal, one is already built and another is still in negotiation.   Nuclear Fuel Final Disposal Act in 2000 determines to bury nuclear waste in the underground. Literature survey, ...
Read more

Not A Royal Wedding

The bride called her husband an indispensable existence and their marriage was necessary choice to protect their mind. The groom insisted on his life as only once and his right to be with his loved one. Her father wanted his daughter’s marriage to be celebrated by the people. The people were not sure whether the family was happy as a whole. Is this the traditional Japanese social system that makes no one happy? Mako Komuro, as known as Princess Mako during her life in one of the royal family Akishino, held on Tuesday a press conference with her husband Kei Komuro, right after submitting marriage report to local government. It was something different from ordinary Q&A session, because Mako was afraid of her mental uneasiness brought by some questions not based on truth. So, the event was actually one-sided speech to the reporters. Mako emphasized that the Kei’s decision of studying abroad five years ago had not been his original idea, but a result of her request to establish an over...
Read more