Today, first of all, I would like to comment on two subjects:

The first is the efforts being made to restore public trust in the electric power industry.

The second is the International Electricity Chief Executives Summit meeting.

It is extremely regrettable and inexcusable that the recent spate of nuclear power problems has resulted in a loss of public trust. I feel that the problems have shaken the industry to its core, and are the most serious we have experienced since the industry came into existence. This is particularly true because the electric power business is deeply intertwined with local communities, and is built on the trust of customers and the residents of areas in which power-generating facilities are sited.

Customer trust is our greatest management resource, and the foundation on which our business is built. Now, that this foundation has been shaken, we are reassessing matters from the ground up, and have established a Trust Restoration Committee to undertake a restoration of trust on an industry-wide basis. The committee is composed of the presidents of the 10 electric power companies, the Japan Atomic Power Company, Japan Nuclear Fuel Limited, and Electric Power Development Co., Ltd.

We will strive to restore public trust by gaining a better understanding of the consciousness of our customers, and by listening to the opinions of people outside our companies to gain an understanding of the steps we need to take. We also intend to exchange information and strengthen communication between member companies to carefully consider and respond to issues that we share in common.

As I said at last month's press conference, I believe that in the current severe management environment it is essential for the entire industry to maintain the stance that customers are our top priority. Companies, after all, exist only because they continue to provide something of value, and on top of this, their very existence depends on the trust of the members of regional communities. For these reasons, I believe that our member companies must reaffirm their commitment to 'customer first' policies through the Trust Restoration Committee and other activities.

As we have said many times, it is necessary for us to continue to actively pursue nuclear power generation if a resource-poor nation such as our own is to secure a stable energy supply for the future, and if we are to address global environmental issues. In this respect, there is absolutely no change in our position. The trust we have lost is not something that can be restored overnight, but all of us in the electric power industry will join together and dedicate ourselves to its restoration.

I ask for the understanding and support of all Energy Press Club members as we strive to achieve this goal. I would now like to turn to the subject of the International Electricity Chief Executives Summit.

On September 30 and October 1, the International Electricity Chief Executives Summit was held in Paris. Attended by the leadership of the Federation of Electric Power Companies of Japan, the Union of the Electricity Industry (EURELECTRIC) of Europe, and the Edison Electric Institute of the United States, the summit meeting was held to provide a forum for the free exchange of opinions on the environment surrounding electric power company operations in each country, and other issues of mutual concern.

As is shown in the reference materials, the topics of discussion included market development and regulation, energy policy, global warming and other shared issues. Presentations were made by electric power company presidents and others, and opinions were expressed on their content.

Speaking as a representative of Japan, I commented on the issues facing the electric power industry, and as president of Kansai Electric Power Company, I spoke on the subject of Japanese electric power company market deregulation.

In my presentation, I reported on the progress and achievements of deregulation in Japan, and commented on some key points that need to be kept in mind with respect to electric power liberalization. More specifically, I pointed out that while pursuing electric power market liberalization that will benefit our customers, it is necessary for Japan to implement a liberalization model that allows private-sector companies to operate freely, while also reflecting the intrinsic energy needs of a nation that depends on imports to meet the majority of its energy needs. In addition, I stressed that even in a competitive marketplace, it is important to clarify the responsibility of providers to supply customers, and as responsible suppliers, to build a relationship of trust with customers.

At the recent meeting, the opportunity to discuss issues and share information with the chief executives of electric power companies in each country was most instructive, and I feel that the information gained will be extremely useful in developing business plans for the future.

In particular, the assembled chief executives noted the following points:

To ensure a stable power supply, it is necessary to provide investment incentives for nuclear power generation and transmission facility construction projects that have long lead times and high initial investment requirements.

Nuclear power is necessary if we are to address environmental issues. There was general agreement on these points, which were confirmed by the joint statement issued at the summit's conclusion.

The next summit meeting is scheduled to be held in the United States in 2004.