There are two topics I would like to cover today. The first is the revision
of the Long-Term Program for Research, Development and Utilization of Nuclear
Energy, and the second is the "Electricity: The New Millennium"
conference in Montreal.
Since June of last year, six separate study groups have been preparing
proposals for the revisions of the Long-Term Program for Research, Development
and Utilization of Nuclear Energy. Each of the committees focused on a
different aspect of the plan. I myself served as joint-chairman of the
No. 1 study group, and participated in the review meeting at which the
final draft was prepared. Thanks to the hard work and spirited participation
of everyone at the review meeting, we were able to finalize a framework
for the plan on June 26. I would like to take this opportunity to express
my heartfelt thanks to them all.
This is the seventh revision of the Long-Term Program for Research, Development
and Utilization of Nuclear Energy since it was first formulated in 1956.
The current plan was developed 1994, when plutonium use was attracting
a great deal of interest at home and abroad. As such, the plan emphasized
the development of a nuclear fuel cycle and a comprehensive plu-thermal
plan.
The framework developed for the upcoming 5-year plan is shown in Reference Document 1. Past plans tended to focus on the specifics of light-water
reactor development and nuclear fuel cycle implementation, but the new
plan addresses nuclear power from the standpoint of energy use. I believe
it effectively outlines a basic philosophy and development guidelines for
advanced R&D and radiation use in the 21st century.
Development of the new plan was an extremely transparent process that involved
the participation of regional government representatives and those who
have been critical of nuclear power in the past. In addition, it differed
from past plans in that development was approached from the standpoint
of "Citizens, Society and Nuclear Power," reflecting not only
the opinions of industry insiders, but the public at large.
As the unfortunate accident at JCO reminded us, safety must always be our
top priority. But I am heartened that we have been able to reconfirm the
essential role of nuclear power in the 21st century. I also believe that
the new plan effectively clarifies our position on interim nuclear waste
storage, the need for a fast breeder reactor fuel cycle, and development
schedule flexibility. In addition, I think it successfully addresses the
question of nuclear power in an age of partial deregulation and other changing
circumstances, and that it does much to clarify the roles to be played
by government and the private sector.
For Japan, energy resources and energy security are vital national policy
issues. Because we are a nation that imports virtually all of its energy
resources from abroad, we cannot rely on oil, coal and gas alone. We must
also have access to an energy supply that is stable, and that allows us
to address global environmental issues. I believe, therefore, that we must
continue to pursue a flexible and forward-looking nuclear power development
policy.
We will now begin the process of transforming the current draft plan into
a final document. The completed Long-Term Program for Research, Development
and Utilization of Nuclear Energy will then be subject to review and presented
for public comment. The final plan is expected to be ratified by the end
of this year.
I have every confidence that we will be able to achieve a national consensus,
and move forward into the 21st century guided by this new Long-Term Program
for Research, Development and Utilization of Nuclear Energy.
I would now like to turn to today's second topic, the "Electricity:
The New Millennium" conference which was held June 18 through 21 in
Montreal, Canada.
Montreal conference was one of the international " summit meetings"
that are held every 12~18 months to allow senior executives from the Edison
Electric Institute (EEI) of the United States, the Union of Electricity
Industry (UNIPEDE) of Europe, and our own Federation of Electric Power
Companies to meet and discuss electric power industry issues. Last year's
meeting, you may recall, was held in Hiroshima.
In commemoration of the millennium, the EEI, UNIPEDE and the Canadian Electricity
Association (CEA) combined there own annual meetings with the conference,
making it one of the most truly international meetings ever held. The International
Energy Agency (IEA) also cooperated in the event, which was attended by
top executives from the US, Canada, Europe and Australia, as well as some
1500 other participants from 64 countries.
An overview of the conference agenda is shown in Reference Document 2.
In keeping with the "New Millennium" theme, senior management
personnel and others presented their views and exchanged opinions on deregulation,
environmental protection and technological innovation.
As Japan's representative, I made a presentation on the subject of "Management
Responses to Power Industry Liberalization in Japan." Speaking as
the president of Chubu Electric Power Company, I described the management
strategies we have adopted in response to deregulation. I spoke specifically
about the importance of management strategies to reduce the risks associated
with a fluctuating revenues, and the need to increase revenue-generating
capabilities on a group-wide basis.
I also emphasized that in an era of increased competition, it is particularly
important for electric power companies to return to their roots and remain
faithful to their mission as public utility providers.
The Montreal conference gave electric power company senior management personnel
the opportunity to freely discuss issues and exchange opinions. It also
provided valuable insights into how customer-oriented management can guide
us in developing future business plans.
At the conference, agreement was reached on the following issues, and a
joint statement was issued to this effect.
o Irrespective of the country and regulatory environment in which they
operate, it is essential for electric power companies to fulfil their duty
as a public utility provider by maintaining a stable supply of electricity.
o In order to maintain a stable power supply, there is a need to develop
business models that allow for sufficient facilities investment.
o The implementation of such business models should not be carried out
across-the-board, but should reflect the resources available to, and the
geographic size of, the countries involved.
The contents of the joint statement are shown in Reference Document 2,
Attachment 2, and represent what I feel is a significant outcome of the
Montreal conference.