Customers will pay for decommissioning

January 14, 2015

Decommissioning costs passed on to customers

Jan. 14, 2015 - Updated 14:02 UTC+1

http://www3.nhk.or.jp/nhkworld/english/news/nuclear.html

An expert panel from Japan's industry ministry says all electricity users should continue to bear the cost of decommissioning nuclear reactors.

The plan comes as the ministry is urging power companies to decide soon on whether they will decommission 7 old reactors. The plants have been in use for about 40 years. That's the government-set lifespan for nuclear reactors.

But they say the high cost of decommissioning is delaying the utilities' decision.

The panel on Wednesday approved the special measures to lessen the burden on utilities.

The measures will allow nuclear plant operators to pass on decommissioning costs to all electricity users even after Japan's electricity market fully opens to new firms in 2016.

The plan also allows power companies to divide and process its vast decommissioning costs over 10 years. Otherwise they would have to be dealt with during the first year the reactors closed. These accounting measures will also be applied to nuclear fuel and power generators that will no longer be used.

The ministry plans to formally adopt the measures by the end of March after hearing comments from public.

Reactor decommissioning costs to be passed to all power users

http://www.japantimes.co.jp/news/2015/01/14/business/reactor-decommissioning-costs-to-be-passed-to-all-power-users/#.VLYhMXt1Cos

Kyodo

The Ministry of Economy, Trade and Industry decided Wednesday that the cost to nuclear plant operators of decommissioning reactors should be passed on to all electricity users in principle even after the electricity market is fully opened to newcomers in 2016.

The controversial scheme is aimed at making sure plant operators can recoup the massive expenses involved. Critics say the plan could undermine fair competition by compelling new entrants with no nuclear power generation to share the decommissioning burden.

The cost is expected to be included as part of the usage fee of power grids and will be charged by power transmission and distribution companies to be spun off from regional electric companies following the planned market opening.

METI is expected to revise a related ministerial ordinance by the end of March. But it will also consider whether to allow exceptions to the new scheme as some members of an expert panel oppose the system for favoring nuclear power.