METI Seeks Commission Input on Chubu Electric Improvement Order
Overview
The Ministry of Economy, Trade and Industry (METI) reviewed a report received from Chubu Electric Power and determined that an order to improve operations under the Electricity Business Act was necessary. Chubu Electric Power said it would not submit an explanation, and METI sought the Electricity and Gas Market Surveillance Commission’s opinion on the planned order. The draft order calls for developing and implementing measures to prevent recurrence, objectively verifying their effectiveness, submitting an operational improvement plan, and reporting on its implementation. The background includes multiple confirmed problems, such as improper conduct during Nuclear Regulation Authority reviews and failures in the internal whistleblowing system. METI said these issues could harm the public interest and undermine the trust of local communities and society at large.
Key points
- METI determined that an operational improvement order for Chubu Electric Power was necessary and sought the commission’s opinion.
- The draft order calls for implementing measures to prevent recurrence, verifying their effectiveness, and submitting an operational improvement plan.
- The report review identified improper conduct during reviews and failures in the internal whistleblowing system, among other issues.
Overview
METI reviewed the report received from Chubu Electric Power on October 29 and determined that an operational improvement order under the Electricity Business Act was necessary. METI offered Chubu Electric Power an opportunity to explain itself on October 30; that same day, the company said it would not submit an explanation. As part of the opinion-gathering procedure before issuing the order, METI sought the Electricity and Gas Market Surveillance Commission’s opinion on the planned order.
Impact
METI explained that the confirmed conduct undermines the integrity of the electricity business and the system as a whole, and could harm the public interest. It also said that improper incidents in nuclear operations, where safety must come first, undermine the trust of local communities and society at large.
Details
The planned order calls for clarifying the responsibilities of executives and employees, and for developing and implementing measures to prevent recurrence by improving legal and regulatory compliance arrangements, organizational culture, checks and balances, internal whistleblowing responses, the operational frameworks of each division, and management controls. The order would require specifying implementation methods and timing, and objectively verifying effectiveness, including through a review system that uses external personnel. If the measures prove insufficient, or in light of guidance or instructions from the Nuclear Regulation Authority, additional measures deemed necessary must be developed and implemented.
Chubu Electric Power would be required to submit an operational improvement plan that includes the methods and timing for implementing specific measures, promptly decide on and carry out necessary initiatives, and report their status to METI. The plan also requires the company to continue responding to METI’s reviews and requests for reports.
The report review identified improper conduct in setting the standard ground motion for reviews of Units 3 and 4 at the Hamaoka Nuclear Power Station, weaknesses in checks and balances and failures in the internal whistleblowing system, deficiencies in operational frameworks, and failures in governance. A review of a separate report also found that some problems were common to other improper incidents.