As you know, the electricity supply and demand situation in the metropolitan area is extremely serious, and the Federation of Electric Power Companies is urging everyone to curb electricity use.
If it seems a bit warm in this room today, it is because we have asked Keidanren and the other tenants of this building to cooperate in efforts to reduce air conditioning use.
Since the ninth of this month we have also adopted lightweight attire at all FEPC workplaces, and at today's General Policy Committee meeting, the all of the electric power company presidents in attendance wore lightweight attire.
I would like to take this opportunity to express our heartfelt gratitude to those who are cooperating with our efforts to reduce electric power consumption, and ask your understanding for the way we are dressed today.
There are three subjects that I would like to comment on today. The first is the ratification of the revised Electric Utilities Industry Law. The second is strengthened quality control measures at the Rokkasho-mura Reprocessing Plant. The third is personnel changes on the FEPC Board of Directors.
Let me begin by commenting on the revised Electric Utilities Industry Law.
As has already been announced, the revised Electric Utilities Industry Law was ratified on the 11th of this month. As it marks a particularly significant milestone for FEPC members, I would like to share my comments on the subject with you.
First of all, I would like to take this opportunity to express our heartfelt respect to those involved in the law's promulgation.
The revised law, whose objective is to ensure a stable power supply and greater choice for customers, calls for the maintenance of a unified distribution system while also ensuring fair and transparent competition. We of the FEPC hold the law in high regard for the direction it defines, establishing a Japanese model for deregulation that takes into account the realities that our nation faces.
In reforming the electric power business, our overriding objective must be the maintenance of a stable supply of the electricity that is an essential economic and social asset. To this end, we strongly hope that the newly introduced system will be supported for a long time to come.
During the debates on the new law's ratification, I was asked to express my opinion to the nation's legislature. Now, as the new law is implemented, the issue of how to balance the needs of deregulation and nuclear power is a key issue, and I would like to take this opportunity to share my views on the subject.
The Basic Energy Policy Law ratified in June of last year defined three clear goals: a stable energy supply, environmental protection, and - while remaining faithful to the first two goals - the application of free market principles. As the 21st century unfolds, energy resources and the environment are expected to become increasingly critical issues, and as is stated in the Long-Term Nuclear Power Plan that defines Japan's nuclear energy policies, the need for nuclear power generation and the establishment of a nuclear fuel cycle remain unchanged, and continue to be central to the nation's energy policies.
However, with increased deregulation, the costs associated with nuclear power development may be difficult to recover, particularly with respect to back-end operations, where the need for long-term investment, coupled with the lack of a clearly defined policy on waste disposal and other issues, increase the risk factor considerably.
We of the private sector plan to move forward with nuclear power generation and the back-end operations that are central to the nation's energy policy, but in so doing, we believe that we must consider the risks undertaken by the private sector, and review the respective roles of the public and private sectors, to ensure that the burden of cost recovery is appropriately and widely shared. And we would like to have steps taken as soon as possible to establish a forum for the deliberation of the specific measures needed to achieve these ends.
With the first revision of the Electric Utilities Industry Law in four years we have gained a renewed awareness of our role in society as custodians of the important asset that is electricity. And we plan to do our utmost to develop a new electricity supply system that allows the mutual realization of the increased public benefit and the increased efficiency that are central to the spirit of the law's revision.
In addition, we have renewed our commitment to do our utmost to increase the benefits enjoyed by electricity users and the nation as a whole.
I would now like to turn to the subject of Japan Nuclear Fuel Limited's efforts to confirm and strengthen quality control at the Rokkasho-mura Reprocessing Plant. Details are shown in Reference Document 1.
As you know, we are engaged with Japan Nuclear Fuel Limited in the construction a spent fuel reprocessing plant whose purpose is the effective reuse of uranium resources and the establishment of a domestic nuclear fuel cycle.
To date, the overall rate of progress is 93%, and water-flow tests, as well as chemical tests, are currently being conducted.
However, storage pool water leaks and other problems have been reported recently, and it appears that it may be difficult to carry out the uranium tests scheduled for this month.
In view of this situation, we have decided together with Japan Nuclear Fuel Limited to strengthen quality control at the reprocessing plant.
Specific measures are described in the reference materials, and include the establishment of a Quality Control Activity Strengthening Team composed of electric power company personnel, who will be stationed on site and who will cooperate fully in a broad range of areas to check the quality control system that is primarily operated by Japan Nuclear Fuel Limited. In addition, they will review its facilities and the conditions under which various tests have been conducted to date.
Furthermore, in order to secure the cooperation of plant construction companies and equipment manufacturers, we invited representatives of the seven firms involved to attend today's General Policy Committee meeting. At the meeting, we explained our objectives and unanimously agreed to work together to strengthen quality control.
As we have long stated, Japan is a nation poor in natural resources, but that has high energy consumption, and the establishment of a nuclear fuel cycle is necessary to secure the future stability of energy resources and our ability to address global environmental issues.
It is our intention to mobilize an industry-wide effort to positively carry out these initiatives, and will maintain safety as our highest priority as we move toward the start of operations in July 2005.
In conclusion, I would like to report on some FEPC personnel changes, details of which are shown in Reference Document 2.
Acting on the retirement of Kyushu Electric Power Company President Michisada Kamata, it was unanimously agreed at today's General Policy Committee meeting to appoint Hokuriku Electric Power Company President Fujio Shinki to succeed Mr. Kamata as Vice Chairman of the Federation of Electric Power Companies. Other personnel changes are also noted in the reference materials.
