Restarting Kashiwazaki not so easy

February 26, 2014

Incoming TEPCO chairman says July restart of Kashiwazaki-Kariwa nuclear plant unlikely

http://mainichi.jp/english/english/newsselect/news/20140226p2a00m0na007000c.html 

Fumio Sudo, who is set to become chairman of Tokyo Electric Power Co. (TEPCO) in April, said Feb. 25 it is unlikely the Kashiwazaki-Kariwa nuclear plant in Niigata Prefecture will be restarted in July.

In an interview with the Mainichi Shimbun, Sudo, an adviser to and former president of steelmaker JFE Holdings Inc., explained that screening by the Nuclear Regulation Authority (NRA) for earthquake faults, which has a bearing on the plant's future, is likely to take several months. "A July restart is looking difficult," he said.

Under a business turnaround plan that the government approved in January this year, TEPCO predicted that its pretax profits for fiscal 2014 would reach roughly 167 billion yen, assuming it could bring the Kashiwazaki-Kariwa plant back online in July. If the restart of the plant's idled reactors is significantly delayed, then this will hold back the utility's earnings, and the company could come under pressure to increase customers' electricity bills again, despite the hike in 2012.

Sudo, however, said it was premature to consider increasing electricity bills, and maintained that TEPCO would strive to cut costs.

"We'll reduce costs to the bone, and even if there's an increase, we want to do all we can to hold it down -- even by a single yen," he said.

Speaking from his experience as president of a steel company that felt the heat of international competition, Sudo said, "TEPCO, too, needs an awareness of international competition." He said that the lack of such awareness was one reason behind the increase in electricity prices.

"Japan's energy costs are roughly triple those of the United States. Unless we make and break alliances, we won't get anywhere," he said. He underscored his position that major restructuring was needed in the power company, just like in the steel industry.

Sudo declared that he will visit Fukushima Prefecture, host to the company's crippled Fukushima No. 1 nuclear plant, soon after he becomes chairman.

"TEPCO lost trust through the nuclear accident. For my first three years (as chairman), we'll start off by restoring confidence," he said. He indicated that he would place priority on restoring confidence by putting effort into providing compensation, handling the nuclear disaster and decommissioning reactors at the Fukushima plant.

February 26, 2014(Mainichi Japan)