With the nuclear industry still reeling from the effects of the March 11 earthquake, government auditors told the industry ministry to redirect 65.7 billion yen ($857 million) in reserve set aside for subsidies for planned nuclear reactors into more productive projects.
With the nuclear industry still reeling from the effects of the March 11 earthquake, government auditors told the industry ministry to redirect 65.7 billion yen ($857 million) in reserve set aside for subsidies for planned nuclear reactors into more productive projects.
The Board of Audit has concluded that about 90 percent of the 73.1 billion yen in reserve is not necessary because 11 of the 14 new reactor projects have been put on hold.
More than 10 billion yen has been set aside almost every fiscal year for subsidies designed to persuade municipalities to accept new reactors.
The amount outstanding had been around 120 billion yen until part of the reserve was used for post-quake reconstruction measures in a supplementary budget.
The subsidies have ranged between 5 billion yen and 13 billion yen a year since fiscal 2006. The money was paid to 10 municipalities where the 14 reactors are planned and their neighboring municipalities.
The Agency for Natural Resources and Energy, part of the industry ministry, had estimated that the subsidies would total 190.7 billion yen.
An agency official said the government, which has started a review of its basic energy plan, will decide what to do with the subsidies after hearing from the municipalities involved.
Construction began only on three new reactors: the Oma nuclear power plant in Aomori Prefecture, the No. 1 reactor at the Higashidori nuclear power plant in the same prefecture, and the No. 3 reactor at the Shimane nuclear power plant in Matsue.
The remaining 11 projects have not yet reached that stage due to opposition from residents and other factors, due in part to the Great East Japan Earthquake.
About 30 years have passed since plans first emerged for some of the projects, such as the Namie-Kodaka nuclear power plant in Fukushima Prefecture and the Kaminoseki nuclear power plant in Yamaguchi Prefecture.
The Board of Audit told the industry ministry not to set aside reserve funds for the stalled projects.
The subsidies were created in 2003 after the Board of Audit said the ministry's special account for energy measures had large amounts of surplus funds.
More than 100 billion yen was left unused because new nuclear power projects had not progressed as scheduled.
This article was written by Kosuke Tauchi and Junji Murakami.