Arbitration ends for Fukushima damages claim — NHK World

” A government body has given up trying to arbitrate between Tokyo Electric Power Company and more than 15,000 people seeking higher monthly compensation for the 2011 Fukushima nuclear disaster.

It was the largest arbitration case involving the nuclear accident.

Namie Town in Fukushima Prefecture filed a petition with the Nuclear Damage Compensation Dispute Resolution Center in 2013, on behalf of residents who were forced to evacuate after the disaster.

More than 15,000, or about 70 percent of the town’s population, signed the petition to demand more compensation from TEPCO, the operator of the damaged Fukushima Daiichi nuclear plant.

TEPCO’s monthly payment for each Namie resident was calculated at 100,000 yen, or about 934 dollars.
In March 2014, the dispute resolution center offered an arbitration plan that called for raising this amount by 50 percent. The town agreed to accept it.

But TEPCO maintains that increasing the compensation would have a significant impact on other evacuees. The center has repeatedly asked the utility to accept the plan.

On Friday, the dispute resolution center told the town of its decision to end the arbitration process.

The claimants are expected to consider whether to file a lawsuit against TEPCO. The town says more than 800 of the claimants are now dead. ”

by NHK World

source

Advertisements

GE faces lawsuit over role in Fukushima nuclear disaster — Boston Globe

” A group of Japanese businesses and doctors sued General Electric Co. in Boston federal court on Friday, claiming the industrial giant was reckless and negligent in its design of the reactors and related systems at the core of the Fukushima nuclear disaster in 2011.

The plaintiffs claim Boston-based GE knowingly used a reactor design at the Fukushima Daiichi Nuclear Power Plant that would fail to protect against the possible threat of earthquakes and tsunamis, a natural risk in that area.

The plaintiffs are seeking class-action status for businesses in the area that suffered economic damage as a result of the disaster, which displaced as many as 150,000 people.

Among other things, the lawsuit claims GE and its partners lowered a protective cliff by more than 60 feet, placing the plant and all six of its GE-designed reactors closer to the Pacific Ocean and in the path of the severe tsunami that struck on March 11, 2011.

Afte the tsunami hit, three GE-designed reactors suffered from “entirely foreseeable flooding and resulting nuclear meltdowns,” causing the release of radioactive matter into the area surrounding the plant, according to the lawsuit. The plaintiffs are essentially blaming GE for defective reactor design as well as for not putting in place enough safeguards to prevent the spread of radiation once the Fukushima plant was breached.

A GE spokesman said the company continues to offer sympathy for those affected by the earthquake and tsunami of 2011.

“The Japanese government and other investigative bodies long ago concluded that the Fukushima nuclear accident was caused by the tsunami, and the resulting loss of seawater pumps and all electrical power, not reactor design,” he said. “We believe these claims can and should be addressed under Japan’s nuclear compensation law, which provides relief for persons impacted by these events.” ”

by Jon Chesto, Boston Globe

source

Japan’s Kansai Electric to shut down 2 major nuclear reactors — Nikkei Asian Review

” OSAKA — Kansai Electric Power Co. has decided to close two large, aging nuclear reactors at a power plant in Fukui Prefecture in light of rising safety costs that make restarting such facilities financially untenable.

The Oi plant’s Nos. 1 and 2 reactors each have an output capacity of 1.18 million kW, making them Japan’s largest to be decommissioned aside from Tokyo Electric Power Co. Holding’s crippled Fukushima Daiichi reactors. Both started operating in 1979. The Osaka-based utility is in talks with Fukui local governments and other parties to make a final decision before winter.

Following the 2011 earthquake and tsunami that caused the Fukushima catastrophe, Japan limited nuclear plants’ operating lifespan to four decades as a general rule. That period can be extended to a maximum of 60 years with the Nuclear Regulation Authority’s approval, but that requires safety investments to the tune of 100 billion yen ($894 million).

Previously, energy companies generally aimed to extend the lifespan of old plants with generation capacities of millions of kilowatts. But with safety costs climbing and energy demand stagnating, turning a profit has grown difficult even at large-scale facilities.

Kansai Electric had already decided to decommission two smaller reactors at its Mihama plant, also in Fukui. Those were among Japan’s six reactors — not including Fukushima Daiichi — with approval to shut down, all with output capacities in the 300,000 kW to 500,000 kW range.

Restarting a planned seven reactors is projected to cost Kansai Electric about 830 billion yen for safety measures. Adding the Oi pair would push the total over 1 trillion yen. Decommissioning a plant takes about 30 years and costs tens of billions of yen, but it is still cheaper than restarting it.

The power company sold around one-fifth less energy in fiscal 2016 than it did in fiscal 2010, as Japanese society grew more energy-conscious following the 2011 disaster and the liberalization of energy retail that led to a loss of customers. Shutting down the two Oi reactors and others will cut the Osaka utility’s generating capacity by around 10%, but with demand also cooling, the reduction is not expected to crimp supply.

Nuclear power now contributes less than 10% of Japan’s energy, down from about 30% before Fukushima. The government’s current plan calls for nuclear power to make up about 20-22% of the total in 2030, far above the present scale.

Japan idled its nuclear plants to make them compliant with tougher safety standards after Fukushima. At present, just five are back online, operated by Kansai Electric, Kyushu Electric Power and Shikoku Electric Power. The government’s target would require having around 30 plants running. But many are more than three decades old, and so will soon either need to be turned off or seek an extension.

If profit concerns force more power companies to go the Osaka utility’s route, Japan’s proportion of nuclear power will remain low, complicating the government’s plan. ”

by Nikkei Asian Review

source

Fukushima court rules Tepco, government liable over 2011 disaster — Reuters

” TOKYO (Reuters) – A district court in Fukushima prefecture on Tuesday ruled that Tokyo Electric Power and the Japanese government were liable for damages totaling about 500 million yen ($4.44 million) in the largest class action lawsuit brought over the 2011 nuclear disaster, Kyodo news agency said.

A group of about 3,800 people, mostly in Fukushima prefecture, filed the class action suit, marking the biggest number of plaintiffs out of about 30 similar class action lawsuits filed across the nation.

This is the second court ruling that fixed the government’s responsibility after a Maebashi district court decision in March.

All the three district court decisions so far have ordered Tepco to pay damages. Only the Chiba court decision last month did not find the government liable for compensation.

The plaintiffs in Fukushima case have called on defendants for reinstating the levels of radioactivity at their homes before the disaster, but the court rejected the request, Kyodo said.

Tepco has long been criticized for ignoring the threat posed by natural disasters to the Fukushima plant and the company and the government were lambasted for their handling of the crisis. “

reporting by Osamu Tsukimori and Aaron Sheldrick; editing by Christian Schmollinger and Gopakumar Warrier, Reuters

source

TEPCO must regain public trust to ensure Fukushima’s steady recovery — The Yomiuri Shimbun

” To ensure the steady recovery of Fukushima, Tokyo Electric Power Company Holdings, Inc.’s revised business plan must not be allowed to end up as pie in the sky.

TEPCO has compiled a new business plan. The utility has strengthened its steps to improve profitability to raise funds for costs including decommissioning reactors and compensation related to the March 2011 accident at its Fukushima No. 1 nuclear power plant. This is the second time the plan has been revised.

The total cost of cleaning up the nuclear accident has ballooned from ¥11 trillion to ¥21.5 trillion. TEPCO will shoulder ¥16 trillion of this amount over about 30 years. The ¥300 billion TEPCO spent in fiscal 2016 on compensation and reactor decommissioning costs will be increased to ¥500 billion annually.

TEPCO must boost its “earning power” to secure sufficient capital to meet those costs. Restarting reactors at TEPCO’s Kashiwazaki-Kariwa nuclear power plant in Niigata Prefecture will be essential for this. Each reactor brought back online will raise TEPCO’s earnings by ¥40 billion to ¥90 billion per year.

TEPCO is working to gradually restart all seven reactors at the Kashiwazaki-Kariwa plant from fiscal 2019. However, as things stand, high hurdles remain in its way. This is because even if a reactor passes safety screenings conducted by the Nuclear Regulation Authority, local government authorities also must agree to the reactors’ restart.

The recent revelation that TEPCO did not disclose data about the insufficient earthquake-resistance of the main quake-resistant building at the plant has further heightened local distrust of the utility. Niigata Gov. Ryuichi Yoneyama is not budging from his cautious stance because he believes safety measures at the plant are insufficient. “At the moment, I can’t agree to the restart” of the reactors, Yoneyama said.

An expert panel of the Economy, Trade and Industry Ministry also had some stinging criticism for TEPCO, saying it “has not earned enough trust from the public.”

Transparency vital

On June 23, TEPCO will switch to a new leadership lineup when Hitachi, Ltd. Honorary Chairman Takashi Kawamura becomes TEPCO’s chairman. Kawamura will need to work hard to regain trust in TEPCO so restarting its reactors can become a reality.

Strengthening cooperation with other electric utilities and launching new operations, such as gas retailing, also will be effective in solidifying TEPCO’s revenue base. Another issue that needs to be addressed is the overseas development of its thermal power business, in which TEPCO is pursuing integration with Chubu Electric Power Co.

The new plan stipulates TEPCO will “prepare a basic framework for cooperation with other companies” by around fiscal 2020, keeping in mind the Higashidori nuclear plant TEPCO is constructing in Aomori Prefecture.

TEPCO is considering working with Tohoku Electric Power Co., which has a nuclear power plant in that region. If this tie-up comes to fruition, it will be useful for establishing a stable supply of electricity. TEPCO’s intentions on this issue are understandable.

Other utilities that could become partners with TEPCO during a realignment in the industry hold deep-rooted concerns that cooperating with TEPCO could result in the costs of dealing with the nuclear accident being shunted on to them. TEPCO must lay the groundwork to dispel such concerns.

TEPCO and the government will, as soon as this autumn, establish a forum at which they can listen to the opinions of other electric utilities on steps to reorganize nuclear power and electricity transmission businesses.

Profits will be distributed based on the capital contribution ratio in a joint venture. Other companies should not be forced to shoulder the costs of the Fukushima nuclear accident. Highly transparent rules such as these will need to be drawn up. ”

by The Yomiuri Shimbun

source

Nuclear taxes get new lease on life after Fukushima — Nikkei Asian Review

” OSAKA — Japanese prefectures with nuclear power plants are moving to ensure that utilities continue to shoulder a tax burden on reactors even as they are being decommissioned, dramatically raising the cost of cleanup efforts that can last 30 to 40 years.

Five nuclear reactors have been approved for decommissioning since the 2011 meltdowns at Tokyo Electric Power Co. Holdings’ Fukushima Daiichi plant. In each case, the host prefectural government has received approval from the ministry of internal affairs to apply a nuclear tax during decommissioning.

Ehime Prefecture in western Japan, home to Shikoku Electric Power’s Ikata nuclear power plant, has decided to change its ordinances by the fall to enable it to collect taxes on the plant’s No. 1 reactor. Shikoku Electric decided last May to decommission the reactor and has applied to the Nuclear Regulation Authority for approval.

The continued stream of tax revenue will help the Ehime government maintain evacuation routes and other facilities and safety measures until the reactor is fully dismantled and nuclear contamination risks eliminated.

Revenue generator

Of the 13 prefectures that host reactors, only Fukushima does not levy a nuclear fuel tax. Prior to the disaster, most prefectures did not collect these taxes during periods when reactors were shut down for periodic inspections or other reasons. The handful of reactors marked for decommissioning before the disaster have not had their taxes extended.

However, prolonged nuclear power plant shutdowns since Fukushima have prompted local governments to tax reactors based on output capacity even when they are idle to try to wring revenue out of idle units. The moves to extend taxes into decommissioning mark a further step.

Ehime Prefecture’s nuclear fuel tax generated 1.46 billion yen ($13.1 million) in revenues to the government in fiscal 2016, 264 million yen of which came from the inactive No. 1 unit at the Ikata power plant. The government seeks to collect at least half of the full amount during decommissioning.

Fukui Prefecture, home to three reactors approved for decommissioning, expects to collect an annual 370 million yen in revenues from its revised nuclear tax, which comes to half of the standard level.

With the country’s nuclear regulator imposing an in-principle 40-year operating limit on reactors, decommissionings are expected to continue at a pace of one to two units a year. The costs of taking a reactor out of service and rendering the site safe are generally estimated at tens of billions of yen. The tax burden could add up to billions of yen per reactor over the course of decommissioning.

“While the taxes may have benefits for communities, if electric rates go up as utilities’ costs rise, residents will also feel the burden,” said Tatsujiro Suzuki, an authority on nuclear energy policy at Nagasaki University. ”

by Nikkei Asian Review

source