Biz Uncertainty to Remain at TEPCO after Possible N-Plant Restart

Tokyo, Nov. 25 (Jiji Press)–Tokyo Electric Power Company Holdings Inc.’s plan to restart its nuclear power station in central Japan has made a major step forward, but it remains unclear if the company will be able to stabilize its earnings. On Friday, Hideyo Hanazumi, governor of Niigata Prefecture, announced that he would tolerate the reactivation of TEPCO’s Kashiwazaki-Kariwa nuclear power station in the prefecture. TEPCO expects that the restart of the plant, which is the most important management issue for the company, will improve its profitability by about 100 billion yen a year. Uncertainty persists, however, over whether the struggling power supplier, which serves Tokyo and prefectures around the Japanese capital, can secure earnings stability, since expenses related to the March 2011 triple meltdown at its tsunami-stricken Fukushima No. 1 nuclear plant in northeastern Japan, including costs of decommissioning the damaged facility and compensation regarding the accident, may increase from the currently estimated level. All seven reactors at the Kashiwazaki-Kariwa plant have been suspended since March 2012, forcing TEPCO to rely heavily on thermal power generation using liquefied natural gas and coal as fuels. The share of nuclear energy in TEPCO’s power supply mix, which came to about 30 pct in fiscal 2010, before the nuclear accident, stood at zero as of fiscal 2024, while thermal power generation saw its share rise to about 80 pct from some 60 pct. By bringing the Kashiwazaki-Kariwa plant’s No. 6 reactor back online, the company aims to hold down the use of fossil fuels, whose prices remain high, and improve its earnings. The company also hopes that the reactor restart will help promote its switch to noncarbon fuel sources and ensure electricity supply to the Tokyo metropolitan area. The Kashiwazaki-Kariwa plant’s No. 6 and No. 7 reactors have passed the Nuclear Regulation Authority’s safety screenings necessary for their restart, and technical preparations for the No. 6 reactor were completed in October. Meanwhile, costs of dealing with the Fukushima No. 1 plant accident are estimated to reach about 23 trillion yen, with some 16 trillion yen of the total set to be borne by TEPCO. The company aims to secure about 500 billion yen annually to cover costs for the decommissioning of the plant and compensation payments. TEPCO President Tomoaki Kobayakawa has said that the company will “thoroughly promote restructuring without sanctuary.” In the April-September first half of fiscal 2025, however, TEPCO incurred a record consolidated net loss of 712.3 billion yen, weighed down by more than 900 billion yen in costs related to the decommissioning of the Fukushima No. 1 plant. Despite the tough financial condition, TEPCO has unveiled a plan to provide about 100 billion yen to Niigata Prefecture to support the creation of new businesses and jobs in the prefecture to help revitalize the regional economy. The financial contribution is also intended to alleviate concerns among local people about a company that caused a major nuclear accident moving to restart nuclear power plant operations. “It’s not easy to regain trust” from residents of the prefecture, Kobayakawa said. TEPCO must continue treading a thorny path as decommissioning and compensation costs keep pressuring its finances. END [Copyright The Jiji Press, Ltd.]