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Chubu says its president to resign, nuclear restart application withdrawn over data scandal (updated)

UPDATE 4-Chubu says its president to resign, nuclear restart application withdrawn over data scandal

Adds government comments in paragraphs 12-13

Yasui, a director, will become Chubu's new president

Chubu will withdraw application to restart 2 reactors at Hamaoka

Company to reapply after restructuring

By Anton Bridge and Yuka Obayashi

- Japan's Chubu Electric Power 9502.T said its president and chairman will resign after it falsified data to facilitate the restart of its Hamaoka nuclear power plant, and that it will withdraw its application to bring two reactors back online.

A report by a third-party committee found Chubu had cherry-picked seismic wave data to ensure the data fell within the company's internal parameters, and that it had failed to take appropriate action despite two internal reports of irregularities.

The report also said senior management had pressured staff to restart the reactors as soon as possible, and that the utility had dismissed criticism that hindered its mission based on its "own sense of justice".

"We take the severe criticism from the third-party committee seriously and with the utmost sincerity," President Kingo Hayashi told a press conference, apologising for repeated irregularities in submitting seismic wave data since 2012.

Hayashi and Chairman Satoru Katsuno will resign on September 30. Minoru Yasui, currently a director, will become president on October 1.

Many of Japan's nuclear power plants have long been idled since a massive earthquake triggered the 2011 Fukushima nuclear disaster and are undergoing re-licensing to meet stricter safety standards.

After news of the data scandal emerged in January, Japan's nuclear watchdog suspended its safety review for the Hamaoka plant in central Japan, Chubu's sole nuclear power plant.

The scandal has been a setback for the industry at a time when nuclear power has regained prominence with the Russia-Ukraine war and the Iran crisis highlighting Japan's need to strengthen energy security.

Tokyo Electric Power 9501.T restarted a reactor at its Kashiwazaki-Kariwa plant earlier this year.

While Chubu is withdrawing its current application for a restart, it plans to reapply after restructuring its organisation and operational processes, Hayashi said.

As of August, Japan had only 11 nuclear reactors in operation, with a combined capacity of about 10 gigawatts. Before the Fukushima disaster, Japan operated 54 reactors.

Japan's Chief Cabinet Secretary Minoru Kihara said on Monday that Chubu needs to thoroughly verify the facts, investigate the causes and take measures to prevent a recurrence of such a scandal.

"The government's position is to pursue a balanced power mix that does not rely excessively on any particular power source or fuel, while ensuring a stable energy supply and decarbonisation. There is no change in our policy of maximising the use of decarbonised power sources, including nuclear energy," he said.


(Reporting by Anton Bridge and Yuka Obayashi; Additional reporting by Kaori Kaneko; Editing by Edwina Gibbs)

((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))

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