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In its latest discussions on electricity market reform, the Ministry of Economy, Trade and Industry is reportedly considering a measure to financially help major power companies with decommissioning their nuclear plants. METI is reportedly weighing having new entrants to the liberalized power retail market shoulder part of the decommissioning cost, which would be added to the electricity bills of their customers. That would be nothing less than welfare for the major suppliers that are seeing nuclear power lose its cost advantages in the face of power retail deregulation since April. The government should avoid policies that could distort the principles of electricity business liberalization.

In its discussions launched in late September, the ministry says the committee will weigh establishing a system that would have power suppliers respond to “issues of public interest,” such as investments to prepare for decommissioning nuclear plants and severe nuclear accidents amid market liberalization. That sounds like a legitimate question to consider, but the measures contemplated by the ministry pose many problems.

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