03/04 Government likely to limit electricity use

2011/04/03

Most signs in Tokyo's Ginza shopping district have been switched off. (Keiko Nannichi)
The Kan administration is close to finalizing a decree to impose limits on peak electricity use this summer in Tokyo and other parts of the Kanto region, sources said.

The crisis at the Fukushima No. 1 nuclear power plant and damage to non-nuclear thermal plants caused by the March 11 earthquake and tsunami have cut Tokyo Electric Power Co.'s generating capacity to about 75 percent of expected peak demand this summer.

The decree is aimed at averting large-scale blackouts, the sources said.

Businesses that use 500 kilowatts or more will likely be asked to cut up to 25 percent from their usage last year during the summer peak, according to the sources.

The decree, to be issued under the electricity business law, would be the first of its kind from the central government since 1974, when a 15-percent cut was imposed during the oil shock.

The government is also considering proposing energy saving measures for households and small- and medium-size businesses, which collectively account for about 40 percent of total demand.

A comprehensive package to deal with the projected electricity crisis is expected to be produced by the end of the month, the sources said.

Firms violating the decree would be ordered to pay up to a 1 million yen ($12,000).

According to a projection by the industry ministry based on last year's figures, peak demand this summer in the Kanto region is likely to be about 60 gigawatts. TEPCO, which services the region, is expected to have a maximum capacity of about 45 gigawatts.

The 25-percent cut by large electricity consumers being considered by the administration would cover the expected shortfall. The government has been talking to business leaders to try to minimize damage to industry.

Nippon Keidanren (Japan Business Federation), the nation's most influential business lobby, is already formulating voluntary power saving plans.

Automakers have been discussing rolling production stoppages, which would require companies to take turns in suspending operations to avoid unplanned power outages in the middle of production.

The government is looking at certifying small- and midsize businesses that are pushing energy saving efforts and will call on households to do their bit to conserve power, the sources said.