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General Contributions for Compensation for Fukushima Nuclear Accident Reduced by ¥29.3 Billion for Major Electric Power Companies in FY21, Despite Recovery from Consumers…

July 5, 2022
Due to the severe business conditions of the major electric power companies, the amount of “general contributions” paid annually to the “Organization for Nuclear Damage Liability and Decommissioning etc.” to compensate for the accident at TEPCO’s Fukushima Daiichi Nuclear Power Station has been reduced by 29.3 billion yen from the previous year. The amount of the general burden in fiscal year 202.1 was reduced by 29.3 billion yen from the previous year due to the severe business conditions of the electric power companies. The general burden for FY 2009 includes 60 billion yen in “consignment charges,” which are included in the electricity rates of households and other users, and the NPO says that “the electric power companies’ share of the burden has been reduced while placing a burden on the public. The corporation is complaining that “it is unfair to reduce the amount borne by the electric power companies while forcing the public to bear the burden. (The corporation is suing, saying, “It is unfair to reduce the amount borne by the power companies while placing a burden on the public.)

The general burden is paid annually to ETIC by the nine major electric power companies (excluding Okinawa Electric Power), Japan Atomic Power Company, and Japan Nuclear Fuel Limited (JNFL). The total amount for fiscal years 2001 to 2007 was ¥163 billion each.

 However, it was discovered that the cost of compensation for the accident at the Fukushima Daiichi Nuclear Power Plant will be higher than initially expected, and from FY20, users of new electric power companies that do not have nuclear power plants will also be asked to pay. The government devised a mechanism to recover approximately 60 billion yen annually from the consignment charges included in monthly electricity bills and add it to the general burden. In FY 2008, when the system is introduced in the second half of the fiscal year, the amount will be halved to about 30 billion yen, and in FY 2009, the full amount, about 60 In FY2009, the full amount of the fee was supposed to increase by approximately 60 billion yen.

 However, when Makoto Yamazaki, a member of the House of Representatives of the Constitutional Democratic Party of Japan, inquired about the fiscal 2009 amount, he found that the actual amount borne by major electric power companies and others had increased from 163.3 billion yen in the previous fiscal year to 133.7 billion yen. The background to this is that the electric power companies are facing severe business conditions.

 Behind this is the severe business situation of electric power companies, which saw their ordinary income decline across the board last fiscal year due to intensified competition following the full liberalization of electric power retailing in 2004, as well as soaring fuel costs.

 The amount of the general contribution is determined each fiscal year upon application by ETIC and approval by the Minister of Economy, Trade and Industry. The Minister of Economy, Trade and Industry determines the amount of the general contribution upon approval. A ministry official acknowledged the reduction and told the paper, “We took into account the severe business situation, with some electric power companies falling into the red last fiscal year. If the amount is not reduced, the stable supply of electricity will be affected.

 Kenichi Oshima, professor of environmental economics at Ryukoku University and an expert on nuclear power plant costs, said, “If they say they are struggling to pay the general burden, that includes the cost of nuclear power plants. It is not right that only nuclear power plant operators are protected while other industries are also struggling. The government and ETIC should publicly explain the reasons for the reduction.

 The Organization for Nuclear Damage Compensation and Nuclear Decommissioning Assistance and General Contributions The Organization for Nuclear Damage Compensation and Nuclear Decommissioning Assistance was established in September 2011 by major electric power companies and the central government to assist with compensation for the enormous damages caused by the TEPCO Fukushima Daiichi nuclear power plant accident. Established in September 2011. Each company pays the general burden. To make up for the shortfall in compensation costs, the Ministry of Economy, Trade and Industry (METI) approved a new pricing system in 2008 that allows the recovery of general contributions from consignment charges. The plan is for each company to collect a total of 2.4 trillion yen over 40 years, which is added to the annual general contributions.
https://www.tokyo-np.co.jp/article/187587?fbclid=IwAR0baRfCuLB4MsT0CF-gkvAkaNWMqNRa8lg5eqKYZDaxZcR3rF8y4mjGyNI

July 16, 2022 - Posted by | Fuk 2022 | , ,

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