Fukushima Bill — Asia Times

” Six years after Japan’s Fukushima nuclear accident three global nuclear corporations are fighting for their very survival.

The bankruptcy filing by Westinghouse Electric Co. and its parent company Toshiba Corp. preparing to post losses of ¥1 trillion (US$9 billion), is a defining moment in the global decline of the nuclear power industry.

However, whereas the final financial meltdown of Westinghouse and Toshiba will likely be measured in a few tens of billions of dollars, those losses are but a fraction of what Tokyo Electric Power Co. (Tepco) is looking at as a result of the Fukushima nuclear disaster.

If the latest estimates for the cost of cleaning up the Fukushima plant prove accurate, Tepco faces the equivalent of a Toshiba meltdown every year until 2087.

In November 2016, the Japanese Government announced a revised estimate for the Fukushima nuclear accident (decommissioning, decontamination, waste management and compensation) of ¥21.5 trillion (US$193 billion) – a doubling of their estimate in 2013.

But the credibility of the government’s numbers have been questioned all along, given that the actual ‘decommissioning’ of the Fukushima plant and its three melted reactors is entering into an engineering unknown.

This questioning was borne out by the November doubling of cost estimates after only several years into the accident, when there is every prospect Tepco will be cleaning up Fukushima well into next century.

And sure enough, a new assessment published in early March from the Japan Institute for Economic Research, estimates that total costs for decommissioning, decontamination and compensation as a result of the Fukushima atomic disaster could range between ¥50-70 trillion (US$449-628 billion).

Rather than admit that the Fukushima accident is effectively the end of Tepco as a nuclear generating company, the outline of a restructuring plan was announced last week.

Tepco Holdings, the entity established to manage the destroyed nuclear site, and the Nuclear Damage Compensation and Decommissioning Facilitation Corporation (NDF) are seeking ways to sustain the utility in the years ahead, confronted as they are with escalating Fukushima costs and electricity market reform.

The NDF, originally established by the Government in 2011 to oversee compensation payments and to secure electricity supply, had its scope broadened in 2014 to oversee decommissioning of the Fukushima Daiichi plant on the Pacific Ocean coast north of Tokyo.

The latest restructuring plan is intended to find a way forward for Tepco by securing a future for its nuclear, transmission and distribution businesses. If possible in combination with other energy companies in Japan.

But the plan, already received less than warmly by other utilities rightly concerned at being burdened with Tepco’s liabilities, is premised on Fukushima cost estimates of ¥21.5 trillion — not ¥50-70 trillion.

To date Tepco’s Fukushima costs have been covered by interest-free government loans, with ¥6 trillion (US$57 billion) already paid out. Since 2012 Tepco’s electricity ratepayers have paid ¥2.4 trillion to cover nuclear-related costs, including the Fukushima accident site.

That is nothing compared to the costs looming over future decades and beyond and it comes at a time when Tepco and other electric utilities are under commercial pressure as never before.

The commercial pressure comes from electricity market reform that since April 2016 allowed consumers to switch from the monopoly utilities to independent power providers.

Prior to the deregulation of the retail electricity market, Tepco had 22 million customers. As the Tepco president observed late last year “The number (of customers leaving Tepco) is changing every day as the liberalization continues … We will of course need to think of ways to counter that competition.”

Countering that competition shouldn’t mean rigging the market, yet Tepco and the other utilities intend to try and retain their decades long dominance of electricity by retaining control over access to the grid. This is a concerted push back against the growth of renewable energy.

Current plans to open the grid to competition in 2020, so called legal unbundling, are essential to wrest control from the big utilities.

The message of unbundling and independence, however, doesn’t seem to have reached the Ministry of Economy, Trade and Industry (METI) that oversees the electricity industry.

Current plans would allow Tepco to establish separate legal entities: Tepco Fuel & Power (thermal power generation), Tepco Energy Partner (power distribution) and Tepco Power Grid (power transmission).

Tepco Holdings will retain their stock and control their management, meaning the same monopoly will retain control of the grid. Where Tepco leads, the other nine electric utilities are aiming to follow.

Leaving the grid effectively still under the control of the traditional utilities will throw up a major obstacle to large scale expansion of renewable energy sources from new companies.

Such businesses will be ‘curtailed’ or stopped from supplying electricity to the grid when the large utilities decide it’s necessary, justified for example to maintain the stability of the grid.

The fact that ‘curtailment’ will be permitted in many regions without financial compensation piles further pain onto new entrants to the electricity market, and by extension consumers.

Further, METI plans to spread the escalating costs of Fukushima so that other utilities and new power companies pay a proportion of compensation costs. METI’s justification for charging customers of new energy companies is that they benefited from nuclear power before the market opened up.

The need to find someone else to pay for Tepco’s mess is underscored by the breakdown of the Fukushima disaster cost estimate in November.

When put at ¥22 trillion estimate, ¥16 trillion is supposed to be covered by Tepco. The Ministry of Finance is to offer ¥2 trillion for decontamination, and the remaining ¥4 trillion is to be provided by other power companies and new electricity providers.

The question is how does Tepco cover its share of the costs when it’s losing customers and its only remaining nuclear plant in Japan, Kashiwazaki Kariwa (the worlds largest), has no prospect of restarting operation due to local opposition?

What happens when Fukushima costs rise to the levels projected of ¥50-70 trillion?

The policy measures being put in place by Tepco, other utilities and the government suggests that they know what is coming and their solution for paying for the world’s most costly industrial accident will be sticking both hands into the public purse. ”

by Shaun Burnie, Asia Times

source

Japan’s power industry at crossroads as Fukushima decommissioning costs rise – The Mainichi

” The Economy, Trade and Industry Ministry’s plan to add the increased costs of decommissioning the tsunami-hit Fukushima No. 1 Nuclear Power Plant was scrapped before the end of the year due to a public backlash.

It is estimated that the costs of decommissioning the crippled power station would snowball from 2 trillion yen to 8 trillion yen. An internal document that the ministry had compiled by September last year stated that the costs of compensation payments as well as the decommissioning expenses should be added to power transmission fees that new power companies pay for the use of major utilities’ power grids.

If the decommissioning costs that are expected to increase by trillions of yen were regarded as TEPCO’s debts, the utility would fall into a state of capital deficit — in which the company’s debts surpass its assets. It could force TEPCO to delist its stock on stock markets and make it difficult for banks to continue loaning to the firm.

To avoid such a situation, the Economy, Trade and Industry Ministry has decided to change the accounting rules to allow TEPCO to book the decommissioning costs in separate years. To do so, however, it is necessary to guarantee that the costs can be recovered from TEPCO every year. Two plans surfaced to enable this.

One is to accumulate money to be saved through TEPCO’s cost-cutting measures and management reform at the Nuclear Damage Compensation and Decommissioning Facilitation Corp. (NFD), which would control the decommissioning costs. The other is to add part of the decommissioning costs to transmission fees.

In October, a senior ministry official told LDP legislators behind closed doors, “It’s safer to add the costs to the transmission fees than relying on TEPCO’s management reform.”

However, experts as well as the general public intensified their criticism of the plan to add decommissioning expenses to the transmission fees despite the earlier plan to make sure that TEPCO fully secured funds for decommissioning the plant.

In response, the ministry changed its policy. In a Nov. 8 document that the ministry released when briefing LDP members, it stated the two plans as ways to certainly secure enough funds for decommissioning the plant. However, in its Dec. 1 document, the plan to add the costs to transmission fees was dropped.

“We considered the use of transmission fees but we can’t implement it because of mounting criticism of the plan,” said a ministry official in charge of the matter.

On the other hand, major power suppliers besides TEPCO have footed the costs of paying compensation to those affected by the Fukushima nuclear crisis. An expert committee dealing with the matter proposed at the end of the year that the increase in the amount of compensation payments should be raised by adding the amount to transmissions fees.

Saying that power companies that own nuclear plants should have saved money to respond to nuclear accidents, the panel recommended that new power companies should shoulder part of the costs because their customers had previously benefited from nuclear power run by major utilities.

The committee also proposed that major power suppliers be obligated to supply less expensive electricity, such as power generated at nuclear plants, to new power companies. In other words, the panel attempted to take the carrot-and-stick approach to convince new market entrants.

In response to the recommendations, the Economy, Trade and Industry Ministry will implement the proposals after soliciting public comments. As a result of the implementation of the plan, the monthly electric power bill for a standard household in Japan, excluding Okinawa Prefecture where there are no nuclear plants, would rise an average of 18 yen over a 40-year period from 2020.

The ministry patiently and carefully formed consensus among legislators over the plan. The committee’s conclusion was based on its explanatory document that the panel presented to the LDP shortly before.

House of Representatives member Taro Kono and a few other LDP legislators calling for an end to Japan’s reliance on atomic power voiced opposition, but they fell far short of a majority.

Minako Oishi, an adviser on consumer affairs who sits at the experts’ panel, repeatedly voiced opposition to adding compensation costs to transmission fees on the grounds that it would run counter to the purpose of liberalizing the power market. She also released a written statement to that effect. However, she was unable to overwhelm the firm alliance between politicians and bureaucrats.

“I have the impression that the conclusion had been drawn in advance. Such a serious matter as the additional financial burden of dealing with the Fukushima accident should’ve been discussed at the Diet,” Oishi said.

On Dec. 20, 2016, the ministry’s expert committee compiled its recommendations estimating that TEPCO needs to shoulder 16 trillion yen of the cost of dealing with the Fukushima nuclear crisis. The recommendations urged TEPCO to merge each of its divisions, including nuclear power and power transmission, with those of other companies — effectively leading to a split of the utility — and advance into the global market.

On the same day, a message by TEPCO President Naomi Hirose was released through the company’s in-house computer network. “If we steadily continue our work without hesitation, we can open up new opportunities. This is something that only TEPCO can do,” the message said.

However, the message reflects Hirose’s anxiety. Hirose told TEPCO executives the following day at the headquarters, “I’m worried whether employees can maintain their morale. Please try not to make them feel weak.”

TEPCO failed to achieve its goal of getting out of state control as early as fiscal 2017 by improving its business performance — because there are no prospects that its idled Kashiwazaki-Kariwa Nuclear Power Plant in Niigata Prefecture can be reactivated in the foreseeable future.

TEPCO Director Keita Nishiyama sat at the news conference on July 28 with Chairman Fumio Sudo and President Hirose, and read a statement saying that “the government needs to clarify its policy” on how to shoulder the costs of dealing with the nuclear crisis, which is expected to worsen. Nishiyama is a bureaucrat that the ministry loaned to TEPCO as a board member after placing the utility under state control.

His tough statement indirectly asks the government for assistance. A TEPCO executive said, “It’s not a type of statement written by a private company insider.”

At the news conference, the ministry suggested that it would take the opportunity of discussions on how to shoulder the costs of dealing with the Fukushima nuclear crisis to embark on its long-cherished goal of restructuring the electric power and atomic energy industries.

About two months later, the ministry set up two expert panels — one on TEPCO reform and the other on the reform of the electric power system.

“In Japan, the demand for power has stagnated. In particular, regulations on the atomic energy business are stiff. Therefore, the power industry is a declining industry. There’s no time to lose in promoting business tie-ups and overseas expansion. Discussions shouldn’t be limited to TEPCO reform,” said a ministry official.

However, some TEPCO officials have expressed displeasure at the move. “Infrastructure companies like us are different from manufacturers. It’s important to ensure stable power supply. It’s not true that we should just increase our profits,” one of them said.

At the same time, executives of other major power companies reacted coolly to TEPCO.

“We don’t know how much of the costs of dealing with the Fukushima accident we’ll be required to shoulder,” one of them said.

“TEPCO’s arrogance that stood out in the industry is still fresh in our memory,” another commented.

The ministry and the expert panel on TEPCO reform share the view that TEPCO needs to carry out the largest-scale reforms since Yasuzaemon Matsunaga, the “king of the power industry” who established major power companies’ regional monopolies in order to ensure stable power supply.

However, Japanese semiconductor and liquid crystal manufacturers and other companies that were integrated on the initiative of the Economy, Trade and Industry Ministry have not grown as the ministry had aimed.

As such, it remains to be seen whether TEPCO will join hands with other power companies and gain entry into the global market as the ministry envisages. “

by The Mainichi

source

First thyroid cancer case in Japan recognized as Fukushima-related & compensated by govt — RT

” A man who worked at the Fukushima nuclear power plant in Japan during the disastrous 2011 meltdown has had his thyroid cancer recognized as work-related. The case prompted the government to finally determine its position on post-disaster compensation.

The unnamed man, said to be in his 40s, worked at several nuclear power plants between 1992 and 2012 as an employee of Tokyo Electric Power Company Holdings Inc. He was present at the Fukushima Daiichi nuclear power plant during the March 11, 2011 meltdown. Three years after the disaster, he was diagnosed with thyroid gland cancer, which the Japanese Ministry of Health, Labor and Welfare confirmed on Friday as stemming from exposure to radiation.

The man’s body radiation exposure was totaled at 150 millisieverts, almost 140 of which were a result of the accident. Although this is not the first time that health authorities have linked cancer to radiation exposure for workers at the Fukushima plant, it is the first time a patient with thyroid cancer has won the right to work-related compensation.

There have been two cases previously, both of them involving leukemia.

The recent case prompted Japan’s health and labor ministry to release for the first time its overall position on dealing with compensation issues for workers who were at the Fukushima plant at the time and after the accident. Workers who had been exposed to over 100 millisieverts and developed cancer five years or more after exposure were entitled to compensation, the ministry ruled this week. The dose level was not a strict standard but rather a yardstick, the officials added.

As of March, 174 people who worked at the plant had been exposed to over 100 millisieverts worth of radiation, according to a joint study by the UN and the Tokyo Electric Power Company. There is also an estimate that more than 2,000 workers have radiation doses exceeding 100 millisieverts just in their thyroid gland, Japanese newspaper the Asahi Shimbun reported.

The 2011 accident at the Fukushima nuclear power plant was the worst of its kind since the infamous 1986 catastrophe in Chernobyl, Ukraine. After the Tohoku earthquake in eastern Japan and the subsequent tsunami, the cooling system of one of the reactors stopped working, causing a meltdown. Nearly half a million people were evacuated and a 20-kilometer exclusion zone was set up. ”

source

Fukushima’s voluntary evacuees — The Japan Times Editorial

” A citizens’ group supporting the people in Fukushima Prefecture who have fled from their homes in the wake of the March 2011 nuclear disaster has submitted a petition to the Diet with nearly 200,000 signatures asking for the continuation of public housing assistance for the evacuees. The prefectural government announced last year that it plans at the end of next March to terminate the assistance for people who voluntarily left their homes. However, most such evacuees have yet to find new residences.

Halting the housing assistance will place a heavy financial burden on low-income evacuees. Fears also persist over the radioactive contamination in the areas where they lived before the nuclear crisis. Not only the prefecture but the national government, which pays for a large portion of the assistance, should rethink the decision.

As of July, some 89,000 Fukushima people continued to live away from their homes — 48,000 inside the prefecture and 41,000 elsewhere in Japan — after they fled from the dangers posed by the triple meltdowns at Tokyo Electric Power’s Fukushima No. 1 power plant. Some evacuees followed the government’s designation of their hometowns as no-go zones due to the high levels of fallout, while others left their homes on their own out of fear of radiation exposure, particularly for their children, and other reasons even though they lived outside the designated evacuation zones.

The Fukushima Prefectural Government has since been providing housing assistance to the nuclear refugees regardless of whether they stayed within the prefecture — and regardless of whether they were forced out by government order or fled by choice — to cover their rent, including for public housing units owned by local governments. Fukushima has offered the aid by annually renewing the application of the Disaster Relief Law, under which a prefectural government carries out relief measures to residents in the event of a disaster — including supply of food, water, clothing and medical services as well as emergency repairs to damaged homes — with a large portion of the cost coming from national coffers. The national government has shouldered most of the expense of the housing assistance regarding Fukushima.

The prefectural government announced in June last year that it would end the assistance for voluntary evacuees at the end of next March. Gov. Masao Uchibori said the termination is aimed at prompting the evacuees to return to their original homes and at helping promote their sense of self-reliance. He explained that living conditions in the prefecture have improved with the development of public infrastructure and progress in the cleanup of radiation-contaminated soil.

According to a prefectural report based on a survey conducted in January and February, the decision will halt housing assistance for 12,436 households. Of the 3,614 households that voluntarily evacuated but remained in the prefecture, 56 percent have not yet found a place where they can live once the assistance is halted. The corresponding figure for the 3,453 such households living outside the prefecture is much higher — nearly 78 percent. The prefecture should pay serious attention to these findings. Some families may not be able to find and pay for a new home, although the prefecture reportedly plans to offer small subsidies for low-income and single-mother households after the large-scale assistance is ended.

The voluntary evacuees are confronted with various difficulties, both financial and psychological. The amount of compensation they received from Tepco is much smaller than that paid out to evacuees from the no-go zones. They also do not receive the monthly damages of some ¥100,000 that Tepco doles out to cover the mental suffering of those from the designated evacuation zones. Many of them face hardships ranging from the loss of their former jobs to separation from family members, long-distance commuting and divorces of couples due to differences over evacuating. The loss of housing assistance will likely result in even more hardships, both financial and emotional.

Many of the voluntary evacuees remain reluctant to go back to their hometowns for a variety of reasons, including the persistent fear of radiation, the desolate conditions of their original homes, and anticipated low levels of medical and other services in their former communities. The national government says it is safe for evacuees to return if the annual cumulative dose in the area is 20 millisieverts (mSv) or less, but that level is much higher than the legal limit of 1 mSv allowed for people in ordinary circumstances. In Ukraine, hit by the 1986 Chernobyl catastrophe, people are required to migrate if the annual cumulative dose in their area is 5 mSv or more and have “the right to evacuate” if the rate is between 1 mSv and 5 mSv. The national government and Fukushima Prefecture need to address why many of the volunteer evacuees are reluctant to return.

The national government may want to highlight the reconstruction in areas devastated by the March 2011 Great East Japan Earthquake and tsunami as well as the Fukushima nuclear disaster when Tokyo hosts the 2020 Summer Olympic Games. However, this should not result in the premature termination of vital relief measures for the affected people or untimely lifting of the designation of danger zones hit by the nuclear crisis. The government, which has sought to reactivate the nation’s nuclear power plants idled since the 2011 disaster, should understand why the evacuees felt they had to flee from their homes in the first place. It should not give up its duty of adequately helping the disaster victims. ”

source

Fukushima costs to soar to 20 trillion yen — Nikkei Asian Review

” TOKYO — The combined costs of paying compensation for the Fukushima nuclear disaster and the decommissioning of the plant’s reactors may be double the initial estimate, rising to more than 20 trillion yen ($176 billion), according to estimates by the country’s industry ministry.

At the end of 2013, the Ministry of Economy, Trade and Industry calculated the cost at 11 trillion yen, which has since become the government’s official estimate.

As electric companies other than Tokyo Electric Power Co., the operator of the crippled plant, will also pass part of the cost on to consumers through higher rates, an increase in the public burden is unavoidable.

According to multiple sources, the ministry has already conveyed its new estimates to members of its expert panel, which is in discussions on reforming the management structure at Tepco and measures to secure funds.

The ministry aims to reach an agreement with the Ministry of Finance during planned discussions over the expansion of an interest-free loan program from 9 trillion yen to support Tepco.

The 11-trillion estimates foresaw 5.4 trillion yen for compensation payments; 2.5 trillion yen for decontamination work; 1.1 trillion yen for the construction of interim radioactive waste storage facilities; and 2 trillion yen secured by Tepco to scrap the reactors.

The new estimates see compensation payments costing 8 trillion yen and 4-5 trillion yen for decontamination.

The cost of decommissioning reactors — a process which will span at least 30-40 years — are projected to swell to hundreds of billions of yen a year from the current 80 billion. That would add several trillion yen to the overall cost.

Combined with the cost of building interim storage facilities, the total cost is forecast to exceed 20 trillion yen.

The snowballing costs are due mainly to the expansion of the number of people eligible for damages and the difficulty of conducting decontamination work, neither of which was fully understood when the initial estimates were made.

As conditions inside the reactors gradually become clear ahead of the retrieval of fuel debris scheduled for early in the 2020s, it is becoming increasingly certain that decommissioning will cost more than 2 trillion yen. ”

source

Cancer patient compensated for Fukushima work to sue Tepco — The Asahi Shimbun

” A 42-year-old man diagnosed with leukemia after working at the crippled Fukushima No. 1 nuclear plant plans to sue Tokyo Electric Power Co., saying the utility failed to take adequate precautions against radiation exposure.

He will also sue Kyushu Electric Power Co., operator of the Genkai nuclear plant in Saga Prefecture where he had also worked, in the lawsuit expected to be filed at the Tokyo District Court on Nov. 22.

The man, who is from Kita-Kyushu in Fukuoka Prefecture, will demand about 59 million yen ($541,000) in total compensation from the two utilities.

“TEPCO and Kyushu Electric, as the managers of the facilities, are responsible for the health of workers there, but they failed to take adequate measures to protect them from radiation exposure,” said one of the lawyers representing him.

“The man was forced to undergo unnecessary radiation exposure because of the utilities’ slipshod on-site radiation management, and as a result had to face danger to his life and fear of death,” the lawyer said.

The lawyers group said the man has a strong case, citing a ruling by labor authorities in October 2015 that recognized a correlation between his leukemia and his work in response to the 2011 Fukushima nuclear disaster.

It was the first time cancer was ruled work-related among people who developed the disease after working at the stricken Fukushima No. 1 nuclear plant.

The planned lawsuit will be the first legal action against TEPCO brought by an individual whose work-related compensation claim has already been granted.

Between October 2011 and December 2013, the man worked at the Fukushima No. 1 nuclear plant to set up a cover on the damaged No. 4 reactor building and perform other tasks.

The man also did regular maintenance jobs at the Genkai plant.

His accumulative radiation exposure at the two plants came to about 20 millisieverts.

He was diagnosed with acute myelocytic leukemia in January 2014. ”

source