The CEO of Chubu Electric Power Co., Japan's third-largest energy company, announced on Monday that he and the chairman of the board will resign to take responsibility for years of manipulation of earthquake safety data for Hamaoka reactors 3 and 4. The company has also decided to withdraw its requests to resume operations of these reactors.
Background of Data Manipulation
Japan is gradually resuming operations of some of its 54 nuclear reactors that were shut down following the Fukushima disaster in 2011. This disaster, caused by a 9.0 magnitude earthquake off the northeastern coast of Japan and the resulting tsunami, led to core meltdowns in three reactors owned by Tokyo Electric Power Company (TEPCO).
Chubu Electric's announcement comes as the government of Prime Minister Sanae Takaichi has accelerated its efforts to resume nuclear reactor operations in light of rising energy costs and pressure to reduce carbon emissions.
Cultural and Management Implications
Kingu Hayashi, CEO of Chubu Electric, stated that an external investigative committee found that the company had provided manipulated seismic data for Hamaoka reactors 3 and 4 for years to ensure the numbers met requirements. Given serious questions about the validity of safety data, the company decided to withdraw its requests for resuming operations for these two reactors.
Hayashi emphasized, "We faced serious problems in our organizational culture and governance. Restoring public trust is our top priority." He and Sakuto Katsuno, the chairman of the board, are not directly linked to the data manipulation, but senior management had made early resumption a key business goal and reprimanded the relevant team for delays in obtaining stringent approvals.
Hayashi and Katsuno will officially resign on September 30, and Minoru Yasui, who is currently a director, will be appointed as CEO starting October 1.
Chubu Electric had applied for safety reviews in 2014 and 2015 to resume operations of reactors 3 and 4 at the Hamaoka plant, but Japan's nuclear regulatory authority halted its review in December after months of internal investigation triggered by a whistleblower's notification.
Currently, two other reactors at this plant are being decommissioned, and one reactor is offline. The plant is located about 200 kilometers (125 miles) west of Tokyo in a coastal area known for potential risks from major earthquakes.
Hayashi stressed that nuclear energy remains an important source of energy supply, and the company will reapply to resume operations of reactors 3 and 4 after implementing preventive measures and renovations.
Public opinion on nuclear energy in Japan remains divided due to safety concerns following the Fukushima meltdowns in 2011, although acceptance has gradually increased as many households face rising fuel costs due to the fallout from Middle Eastern tensions.
