Chubu Electric Power Co.’s top two executives are set to step down over the falsification of safety data used in regulatory reviews for the proposed restart of some of its nuclear reactors, according to local media.
President Kingo Hayashi and Chairman Satoru Katsuno have decided to resign to take responsibility for the scandal, NHK reported on Sunday, citing unidentified people familiar with the matter. The utility is expected to announce their departures on Monday.
Chubu Electric, however, said on its website that no such decision had been made at this time.
The reported leadership changes follow an investigation commissioned by Chubu Electric in January into allegations that the company falsified earthquake-risk data and provided false explanations to Japan’s nuclear regulator during safety reviews. The assessments were required for the proposed restart of the No. 3 and No. 4 reactors at the Hamaoka plant in Shizuoka prefecture.
The company received a report on Thursday from an independent panel examining the circumstances and causes of the misconduct. The findings have placed renewed scrutiny on the utility’s handling of safety information at a time when regulatory approval remains essential to any attempt to bring the reactors back into operation.
The controversy has also raised questions over the future of the restart application itself. NHK reported on Friday that Chubu Electric was preparing to withdraw its application to restart the Hamaoka reactors. The report triggered a sharp reaction in the company’s shares, which fell as much as 4.2%.
The latest allegations add to a series of problems confronting Chubu Electric. The company has also faced errors in calculating costs used to determine retail electricity rates, increasing pressure on management and raising concerns about the utility’s internal processes.
Industry Minister Ryosei Akazawa criticised the problems on Friday, describing them as “extremely regrettable”. He also said authorities would consider the strictest necessary response.
For Chubu Electric, the dispute over the Hamaoka reactors is particularly significant because the safety assessments were directly connected to the regulatory process required for their restart. The allegations concern both the underlying earthquake-risk data and explanations provided to Japan’s nuclear regulator, putting the company’s credibility under scrutiny.
The independent panel’s report, delivered to the company on Thursday, now forms a key part of the response to the misconduct allegations. The reported resignations of Hayashi and Katsuno would represent a senior-level acceptance of responsibility, although Chubu Electric has not confirmed that either executive will leave.
With the company facing the prospect of withdrawing its restart application while simultaneously dealing with other operational and financial problems, the scandal threatens to deepen the pressure on its leadership and its efforts to restore confidence in its regulatory and safety practices.
