Japan Press Weekly

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2012 May 9 - 15 [NUCLEAR CRISIS]

N-energy promotion costs added to TEPCO’s electricity rates

Tokyo Electric Power Co. has forced its users to shoulder cost of promoting nuclear energy by adding that expense to electricity rates, according an estimate TEPCO submitted to the ministry of economy in 2008 associated with the increase in the rates at that time.

The system of electricity rates in Japan adopts the “comprehensive cost” method consisting of expected profits and operating expenses for labor, depreciation, and fuel.

The estimate shows that TEPCO incorporated 6.4 billion yen into users’ electricity rates for such media campaigns as buying publicity promoting nuclear power generation, and 2 billion yen in donations to power plant-hosting municipalities, including those which host nuclear reactors.

TEPCO added 6 billion yen to the estimate as the cost to enhance understanding of localities hosting nuclear power or other power-generating plants. The utility also allocated 2.1 billion yen as its membership dues for the Federation of Electric Power Companies of Japan (FEPC).

Composed of Japan’s 10 regional power companies, the FEPC has played a significant part in the media hype to spread the “safety myth” of nuclear power generation.

To a new estimate submitted ahead of an increase in electricity rates in 2012, TEPCO refrained from adding such nuclear promotion costs as advertising expenses, all-electric housing-related expenses, donations to plant hosting municipalities, and FEPC dues.