Nearly eight years have passed since the catastrophic triple meltdown at the Fukushima No. 1 nuclear power plant, yet serious problems and flaws remain unaddressed with the current system. The government clearly has no intention of tackling them anytime soon.
The Abe administration and the power industry are pushing to restart offline reactors, which is a very irresponsible move.
The current system for compensation requires operators of nuclear plants to sign contracts with both private-sector insurers and the government to finance payouts related to nuclear accidents.
But these contracts are good for only up to 120 billion yen ($1.06 billion) per nuclear plant. This is way too small, given that compensation payments related to the Fukushima disaster have already surpassed 8 trillion yen.
The government’s rationale is that utilities must work together to fork up funding for the system in light of the massive sums required. This system is supposed to swing into action if another major nuclear accident occurs.
But it is hard to claim that a system based on mutual aid among competitors is sustainable, given the growing competition due to the liberalization of the power retail market.
It is time to find an answer to the weighty, complicated question of how the financial burden of preparing for nuclear accidents and paying compensation for losses should be shared among electric power companies, their stakeholders and the government
Should nuclear power generation continue despite the potential risks and social costs? If another severe nuclear accident occurs, who should take the responsibility for dealing with the aftermath and in what ways?
These are just some of the fundamental questions about nuclear power policy raised by the need to revamp the compensation system.
Read more at EDITORIAL: So who will foot the bill if another nuclear disaster strikes Japan?