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Japan assembly agrees to restart reactors, hurdles remain

Kansai Electric Power Co's Ohi nuclear power plant (R-L) No.1, No. 2. No.3 and No.4 reactors are seen in Ohi, Fukui prefecture January 26, 2012. REUTERS/Issei Kato

By Linda Sieg and Yoko Kubota

TOKYO (Reuters) –

The assembly in a western Japanese town that hosts a nuclear plant agreed on Monday it was necessary to

restart two off-line reactors, its chairman said, the first such nod since all the country’s stations

were halted after the Fukushima crisis.

With power shortages

looming in the region when demand peaks this summer, the central government has been trying to win

approval from towns and prefectures that host reactors. All 50 reactors are off-line since the last one

shut down for maintenance on May 5.

The government is set to urge businesses and consumers in

Kansai Electric Power Co’s service area in western Japan to make voluntary power cuts of 15 percent

this summer to cope with shortages, media reported.

The Nikkei business daily, however, said

that the government would also consider mandatory power cuts and rolling blackouts if

necessary.

Mandatory restrictions were imposed in some regions last year after the Fukushima

crisis, the worst since Chernobyl in 1986, with three reactors suffering meltdowns after the plant was

hit by a huge earthquake and tsunami.

The central government last month said reactors No. 3 and

No. 4 at Kansai Electric Power Co’s plant in Ohi, Fukui prefecture, 360 km (225 miles) west of Tokyo,

were safe to restart.

Officials must still persuade a wary public – including residents of

regions close enough to be at risk from a nuclear accident but too distant to reap economic rewards –

that a resumption is safe. Delays in setting up a new nuclear regulatory agency due to disputes in

parliament have further spooked voters.

Kinya Shintani, the chairman of Ohi town assembly, said

that the local economy and employment have been affected by the reactor halts.

“Largely

understanding the necessity of nuclear power and taking into consideration the residents’ opinions as

well as the impact on consumers’ livelihoods and the economy, we decided to agree to a restart,” he

said in a statement.

Ohi received about 2.5 billion yen (19.2 million pounds) in subsidies in

the financial year to March 2010 related to Kansai Electric’s four reactors. Many jobs also depend in

some way on the plant.

KANSAI SHARES UP, NEIGHBOURS WARY

Kansai Electric’s share price

closed up almost 5.6 percent after the news, helping the benchmark Nikkei share index break a three-day

losing streak.

Tokyo Electric Power Co, Japan’s biggest utility and the owner of the Fukushima

nuclear plant, posted on Monday an annual loss of almost $10 billion as compensation claims for the

radiation disaster brought it to the brink of bankruptcy and fuel costs soared after idling all its

atomic plants.

The central government has no legal obligation to win local approval, but is

unlikely to proceed with restarts without the agreement of the host town and prefectural

government.

It is uncertain, though, whether Tokyo authorities would override opposition from

nearby prefectures with public opinion divided.

A weekend survey by the pro-nuclear power

Yomiuri newspaper showed that 45 percent of respondents backed restarting reactors deemed safe and an

equal number were opposed.

Some critics say the government is making undue haste to get reactors

up and running because surviving peak summer demand without nuclear power would make it hard to

convince the public that atomic energy is vital.

Environmental group Greenpeace said the

government’s “reckless push” to get reactors back in service “has left many communities thinking they

have to choose between risks to their health and safety, and risks to their jobs and

prosperity.

Nuclear power produced nearly 30 percent of Japan’s electricity before the crisis.

The government is working on a energy mix policy it hopes to unveil this summer, replacing a programme

that had aimed to boost the share of atomic power to more than 50 percent by 2030.

(Reporting by

Linda Sieg; Editing by Aaron Sheldrick and Sanjeev Miglani)

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