We would like to express our heartfelt sympathy to those presently
suffering due to the Tohoku-Chihou-Taiheiyou-Oki Earthquake.
In addition, we deeply apologize to the residents living in the
surrounding area of the nuclear power station, our customers, and all
citizens for the distress and inconvenience caused by the accident at
Fukushima Daiichi Nuclear Power Station and the rolling blackouts due to
the power shortage.
Furthermore, in the face of this unprecedented crisis, we are continuing
efforts to stabilize Fukushima Daiichi Nuclear Power Station, and care for
the people suffering from the nuclear accident. This includes paying
compensation for the damage caused by the nuclear accident, securing a
stable power supply, and implementing business efficiency improvements and
streamlining.
I. Present Business Policy
1. Controlling the accident at Fukushima Daiichi Nuclear Power Station
We continue to make every effort to stabilize Fukushima Daiichi Nuclear
Power Station based on the "Roadmap towards Restoration from the
Accident at Fukushima Daiichi Nuclear Power Station" so that the
evacuees may return to their homes and all citizens may return to a
secure and sound life.
To ensure smooth implementation, we will establish the "Fukushima
Daiichi Stabilization Center" in June.
(1) Target and Present Measures
We have set two steps to be achieved: "The Steady Decline of
Radiation Dosage" as "Step 1" and the "The Significant Containment
of Released Radioactive an Radiation Dosage" as "Step 2." The dates
for these steps have been set as follows: "Step 1" is set to be
achieved in the middle of July and "Step 2" is set for around 3 to 6
months after the successful implementation of Step 1.
Additionally, we have divided each step into the following five
groups:Cooling of Reactors and Spent Fuel Pool, Mitigation of
Radioactive Materials, Monitoring and Decontamination, Aftershock
Countermeasures and Environmental Improvements. We will set goals
for each group in parallel with the implementation of several
measures.
We will carefully consider the safety and environment of the workers
at Fukushima Daiichi Nuclear Power Station.
(2) Verification of Safety and Risk Controls at the Power Station
We will implement safety control measures immediately such as
securing an emergency power supply and constructing coastal levees,
verify risk controls, and ease the anxiety among the people living
in the surrounding area as well as all citizens.
2. Measures for those afflicted by the nuclear accident
We will apologize to the people who have suffered greatly from the
nuclear accident, explain the countermeasures being taken to control
the accident,and do everything in our power to support those people in
the evacuation centers.
Regarding compensation for those who suffered from the nuclear accident,
we will swiftly execute fair and prompt measures based on the Law on
Compensation for Nuclear Damage with backing from the government.
Through the Fukushima Nuclear Compensation Office (established on April
28), and the Compensation Center (Call center), and Regional Consulting
Center (12 centers in 9 prefectures), we will pay compensation and take
measures based on the guideline formulated by the Dispute
Reconciliation Committee for Damage Compensation.
3. Ensuring Stable Electricity Supply
We predict that our ongoing efforts to secure electricity supply will
enable us to reach peak demand levels of approximately 55.2 GW at the
end of July and 56.2 GW at the end of August.
However, we will take measures on the supply-side and demand-side to
secure stable electricity supply in preparation for sudden demand
increases due to unexpected high temperatures in the summer, and the
occurrence of unplanned shutdowns of the older thermal power stations.
* Estimated peak demand in this summer (Daily peak at the end of
generation): 55 GW
(1) Supply-Side Countermeasures
We will steadily implement measures to secure enough supply capacity
via the restoration of thermal power plants which were shut down due
to damage from the earthquake and are now under periodical
inspection, the restart of thermal power plants which are under
planned long-term shutdowns, the installation of new gas turbines,
the purchase of surplus power from non-utility generation facilities,
and increased power purchases from other utilities.
We will pay special attention to stable operation and maintenance of
generation and transmission facilities and accurate power system
operations, as well as the procurement of a sufficient amount of
fuel necessary to sustain the increased utilization of thermal power
plants.
We will also consider and implement measures to secure power supply
capacity for this winter and next summer.
(2) Demand-Side Countermeasures
We will continue to ask our customers to conserve energy based on
the "Outline of Countermeasures for Power Supply and Demand During
Summertime" presented by the Electricity Supply-Demand Emergency
Response Headquarters from the Japanese government on May 13 in
preparation for this summer's electricity demand.
Specifically for high-voltage customers, we will propose energy
conservation measures and introduce demand and supply adjustment
contracts. For our low-voltage customers, we will introduce
measures to introduce energy conservation through our website etc.
II. Streamlining Policy
To ensure the steady implementation of the aforementioned measures,
thorough streamlining measures will be applied to our asset structure and
organizational structure within the TEPCO group companies focusing only on
those entities essential to electric power supply.
1. Sale of Property
We will sell off real estate properties owned by TEPCO and its related
companies, excluding those properties needed for electric power supply.
Additionally, we will close all recreation facilities (gymnasiums,
accommodation facilities, etc.) and will consider selling off office
buildings and PR facilities, etc.
Furthermore, in principle, we are planning to sell off some of our
marketable securities and domestic/international projects, excluding
those securities and projects required for electric power supply.
We are seeking to secure more than 600 billion yen through the
liquidation of these properties in a rapid manner.
2. Investment and Cost Reductions
Investments will not be made unless required for electric power supply.
Moreover, we will curtail repair costs to the extent that we can secure
stable electricity supply, public safety, and compliance with law and
regulations. In addition, tight controls will be applied to all costs,
for instance, system reduction, R&D, and personnel expenses. Through
these efforts, we will achieve more than 500 billion in cost reductions
in FY2011.
Regarding personnel expenses, we will the reduce the directors'
remuneration (zero remuneration for representative executives, 60%
reduction of total remuneration for managing directors, 40% reduction
of total remuneration for executive officers) and employees' salary and
bonus (25% reduction of annual salary for managers, 20% reduction of
annual salary for general employees). The total reduction amount will
be approximately 54 billion yen. Further measures will also be
considered.
3. Streamlining of Organization, Group structure and Human Resources.
We will reorganize the whole TEPCO Group by simplifying and implementing
efficiency improvements to every operation as well as streamlining
administrative and indirect functions of head offices, etc.
On June 1, the internal restructuring of the sales/marketing and group
business divisions, specifically the changing of the "Marketing & Sales
Division" into the "Customer Relations Division" along with the closing
of the Center for Home Energy Promotion and New Business Development
Department. Further, reorganization based on a review of the operation
will be considered.
Moreover, we will review our group structure in consideration of
reducing businesses other than those needed for the electric power
business.
During the implementation of these measures, we will maintain a staff
of approximately 5,000 people to assist with restoration efforts and
respond to those who have been affected by the accident. The status of
these operations will be continually monitored with further downsizing
to be implemented if deemed necessary.
We are planning to provide details concerning the streamlining of the
organization, group structure and human resources by the end of this
year.
As a result of these new measures and policies, the medium term
management plan "2020 Vision: Medium to Long-term Growth Declaration"
is considered null and void.
Appendix: Streamlining Policy (PDF 320KB)
