According to Kyodo News, Medium-term Proposal Draft, summarized by Policymaking Subcommittee of Ministry of Economy, Trade and Industry, responsible for implementing the reform of electric power system and putting forward policy proposals in terms of raising scrapping fee and compensation cost of Fukushima Daiichi (Fukushima I) Nuclear Power Plant, was published recently.

　　It was learned that the plan, in which scrapping fee would be included in transmission line costs (transmission and distribution costs) new electrical companies paid to Tokyo Electric Power Company Holdings Inc. (hereinafter referred to as “TEPCO”) was strongly disagreed by Japanese people, was eliminated in the draft. Alternatively, such compensation cost would be shifted to the electric charge of large electrical power companies and new electrical power companies, which would be carried out in 2020.

　　It was considered that large electrical companies supply the lower cost power for consumers to restrain the rise of electric charge, thus obtain understanding of consumers. The medium-term proposal draft would be further discussed in the meeting held on December 9 and officially determined as early as December 16.

　　It was reported that scrapping fee, about 2 trillion yen (RMB 120 billion) estimated before, sharply rose to 8 trillion yen or so according to estimation of Ministry of Economy, Trade and Industry. As the plan, in which partial fees would be included in transmission and distribution costs new electrical power companies paid, was strongly disagreed by these companies, such companies would be excluded from the charging objects according to the draft.

　　On this account, the draft proposed that profits of TEPCO should be accumulated as funds, which was managed by the government, aiming at helping TEPCO guarantee its stable scrapping fee. In addition, given nuclear reactors without accident were decided to be closed ahead of schedule, it was required that new electrical power companies in Japan would bear parts of the scrapping fee.

　　It was learned that the compensation cost, about 5.4 trillion yen estimated before, would increase to 8 trillion yen or so, some of which would be included in the transmission and distribution costs and finally shifted to electric charge of those enterprises, including new electrical power companies, the reason was that consumers had been enjoying the low cost power supplied by Fukushima Daiichi (Fukushima I) Nuclear Power Plant.

　　Ministry of Economy, Trade and Industry also planned to hold the “Electrical Power Reform of TEPCO and 1F (Fukushima I) Problem” Committee Meeting on December 9, focusing on operational reconstructing scheme of TEPCO, and also began to summarize the proposal draft.