nuclear-news

Japanese energy utilities say they’re not uniting, to reduce nuclear costs

Japan’s Kansai, 3 others deny report of nuclear tie-up http://www.reuters.com/article/japan-nuclear-idUSL4N1CY1G0  Oct 28 Kansai Electric Power Co and three other energy utilities based in western Japan on Friday denied a report in the Nikkei newspaper that they are considering a tie-up in their nuclear businesses, which are struggling after the Fukushima disaster.

The Nikkei reported that Kansai Electric, Shikoku Electric Power, Chugoku Electric Power and Kyushu Electric Power were in talks to jointly rebuild old nuclear plants and run them together to cut costs. It did not cite sources.

The Nikkei added the moves could lead to a full merger of the companies’ nuclear operations as part of a realignment of Japan’s atomic power sector, which is all but shutdown nearly six years after the meltdowns at the Fukushima Daiichi plant, located in eastern Japan and run by Tokyo Electric Power .

“There is no truth to the report,” Kansai Electric said in a statement. Chugoku Electric and Shikoku Electric issued similar statements, while a Kyushu Electric spokesman also denied the report.

Japan’s industry ministry this week proposed spinning off the nuclear business of Tokyo Electric Power, as part of a possible reorganisation of the nuclear industry in the country.

Ten companies operate nuclear reactors in Japan but only two of 42 operable units are up and running, amid strong public scepticism towards nuclear power after Fukushima. Courts have also intervened to stop plants operating.

Over the years since Fukushima, the regional utilities have been hit by higher fuel costs, massive investments in upgrades to strengthen atomic plants and, since April, the opening of the retail electricity business to new competitors. (Reporting by Osamu Tsukimori; Editing by Aaron Sheldrick and Joseph Radford)

October 29, 2016 - Posted by Christina Macpherson | business and costs, Japan