The incoming president of Tokyo Electric Power Company Holdings Inc. has expressed eagerness to accelerate moves for tie-ups with other companies in an effort to revive its business following the meltdowns at its Fukushima No. 1 nuclear complex in 2011.
“Capital strength is important to seriously embark on growth businesses,” Tomoaki Kobayakawa, the head of Tokyo Energy Partner Inc., Tepco’s electricity retail arm, said in a recent interview. The 53-year-old is set to assume the post of president on June 23.
His remarks were in line with Tepco’s new business turnaround plan announced on March 22, in which it said it aims to realign and integrate its nuclear and power transmission and distribution businesses with other utilities to improve profitability.
The company, burdened with massive costs stemming from the Fukushima disaster, was placed under effective state control in exchange for a ¥1 trillion ($9 billion) capital injection in 2012.
Compensation and disaster cleanup costs have continued to rise, with the latest estimate reaching ¥22 trillion — twice the sum expected earlier.
Kobayakawa said JERA Co., a joint venture of a Tepco unit and Chubu Electric Power Co. in the area of coal power generation, is a “good example” of a tie-up, as enlarged capital has allowed it “to move powerfully.”
He said the power transmission and distribution businesses will also “produce outcomes if we can (align with other companies) and cover a wide network.”
“I want to make more and more proposals,” he said, pointing to the possibility of forming alliances with businesses overseas, given that domestic demand for electricity is on the decline.
On the resumption of nuclear power generation, Kobayakawa expressed his intention to respect the view of local municipalities in restarting reactors 6 and 7 at the Kashiwazaki-Kariwa plant in Niigata Prefecture on the Sea of Japan coast.
Masahiro Sakurai, the mayor of Kashiwazaki, the city that hosts the nuclear plant along with the neighboring town of Kariwa, has said that the decommissioning of one of reactors 1 to 5 at the Kashiwazaki-Kariwa plant would be a condition for the restart of reactors 6 and 7.
“I haven’t met (the mayor) in person. I would like to confirm his intention,” Kobayakawa said.
Kobayakawa also reiterated the company’s position that it will decide “comprehensively” on whether the Fukushima No. 2 nuclear power plant, located around 12 km south of the crippled Fukushima No. 1, would be scrapped as the prefectural government has urged the decommissioning of the plant.