Tokyo Electric Power Company Holdings, Incorporated | Partial Amendment to the Articles of Incorporation (1) at Tokyo Electric Power Company Holdings, Incorporated

Status
AGM passed
AGM date
Previous AGM date
Proposal number
2
Resolution details
Company ticker
9501
Lead filer
Undisclosed filer
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Other
Filer type
Shareholder
Company sector
Utilities
Company HQ country
Japan
Resolved clause
The following new chapter shall be added to the Articles of Incorporation. Chapter X. Reserving a compensation fund to prepare for future nuclear accidents at the Kashiwazaki-Kariwa Nuclear Power Station Article X. The Company shall establish a compensation fund to prepare for future nuclear accidents at the Kashiwazaki-Kariwa Nuclear Power Station. Article X. For the fund, the Company shall target reserving 23.4 trillion yen, equivalent to the damage caused by the Fukushima Daiichi Nuclear Power Station accident. Article X. As for the reserve fund, in accordance with the “beneficiary-pays principle,” TEPCO Energy Partner Incorporated’s customers shall bear the cost by adding the expenses to electricity cost.
Supporting statement
To turn around the current account balance, which has been in the red, the Company is working to restart operations of the Kashiwazaki-Kariwa Nuclear Power Station Unit 6. However, a private company estimated that the operations of the nuclear power plant do not help change the unprofitable status because power generating costs will be higher than current wholesale electricity market purchase prices. If an accident occurs at the Kashiwazaki-Kariwa Nuclear Power Station which affects residents in Niigata Prefecture and its surrounding municipalities, the Company currently does not have the financial power to compensate for damages. We are a company that sells electricity to customers to make a profit. The sales should cover the compensation for such damage. Therefore, based on the “beneficiary-pays principle,” we propose accumulating a reserve fund of 23.4 trillion yen by collecting the amount through electricity rates. There is a rising concern among local residents that, if the situation remains the same, they will not receive any compensation if another nuclear accident happens. The Kashiwazaki-Kariwa Nuclear Power Station generates electricity for the metropolitan area. We demand that beneficiaries, the consumers, share the burden in the event of an emergency.

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