Ministry of Economy, Trade and Industry
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Agency for Natural Resources and EnergyPromulgation and Enforcement of the Ordinance for Partial Revision of the Ordinance on Accounting at Electricity Utilities and Other Provisions– Accounting System for Facilitating Decommissioning Efforts to be Formulated–

Since November 2014, under the Working Group for Reviewing the Accounting System Concerning the Decommissioning of Nuclear Power Stations consisting of accounting experts and other people, the Agency for Natural Resources and Energy (ANRE) has deliberated the formulation of an accounting system which contributes to facilitating the decommissioning of nuclear power stations aimed at making Japan less dependent on nuclear power. As a result of the discussions, ANRE hereby announces that it has promulgated and enforced the Ordinance for Partial Revision of the Ordinance on Accounting at Electricity Utilities and Other Provisions.

1. Background to and purpose of the revision

In January 2015, the Working Group presented a report titled “Draft Report on an Accounting System for Facilitating Decommissioning Aimed at Making Japan Less Dependent on Nuclear Power.” The report states that Japan should avoid bottleneck in the efforts for smooth decommissioning caused by the existing accounting rules and that the following measures should be implemented to have private businesses appropriately and smoothly decide on decommissioning their nuclear power stations and ensuring them to safely advance the decommissioning processes, as the electricity market reform proceeds:

  1. Establishing an accounting system that allows businesses to depreciate and expense the costs incurred in decommissioning measures, which under existing accounting rules should be booked in a lump sum, as an asset over a certain period of time after the decision on decommissioning has been made; and
  2. Providing allowances in terms of electricity rates, which are necessary for introducing the accounting system above.

2. Outline of the revised ordinance

1) Ordinance on Accounting at Electricity Utilities

The revised ordinance is to allow businesses to establish a new suspense account related to the decommissioning of nuclear power stations (hereinafter referred to as the “new account”) and also allow them to transfer or report book values of related facilities (such values that are included in the costs of regulated tariffs and collectable even under the existing system) to the new account, if approved by the METI Minister, while stipulating a provision that such businesses should depreciate the new account in a straight-line way for the period of ten years.

2) Other revised provisions

  1. The revised ordinance is to revise the provisions of the Calculation Rules for Electricity Rates Stipulated in the General Electricity Utilities Supply Provisions as necessary, so as to allow businesses to include the depreciated expenses of new accounts in the costs of regulated rates for retail service.
  2. The revised ordinance is to technically revise the provisions of the Calculation Rules for Wheeling Service Rates Stipulated in the General Electricity Utilities Wheeling Service Provisions

Release date

March 13, 2015

Divisions in charge

  • Policy Planning Division, Electricity and Gas Industry Department, ANRE
  • Electricity Market Division, Electricity and Gas Industry Department, ANRE
  • Nuclear Energy Policy Planning Division, Electricity and Gas Industry Department, ANRE
Ministry of Economy, Trade and Industry
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