Japanese town assembly agrees to restart reactors

The assembly of a Japanese town that hosts Kansai Electric's nuclear plant agreed to restart two off-line reactors.

But further discussion lies ahead before reactors No. 3 and No. 4 at Kansai Electric Power Co's Ohi plant in western Japan can be reconnected to the grid.

With power shortages looming in the region when demand peaks this summer, the central government has been trying to win approval from towns and prefectures that host reactors.

All 50 reactors are off-line since the last one shut down for maintenance on May 5.

Businesses and consumers in Kansai region, served by Kansai Electric Power Co, could be asked to cut electricity use by 20 percent this summer compared to 2010 levels, according to a government draft document released on Monday.

The government will consider whether to issue a mandatory power cut order for corporate users in Kansai, which includes the vast Osaka metropolitan area, or impose rolling blackouts in several regions, the document also showed.

It will reach a conclusion in about a week.

The central government last month said the two reactors in Ohi, Fukui prefecture, 360 km west of Tokyo, were safe to restart.

Officials must still win over a wary public - including residents of regions close enough to be at risk from a nuclear accident but too distant to reap economic rewards. Delays in setting up a new nuclear regulatory agency due to disputes in parliament have furtherspooked voters.

Kinya Shintani, chairman of Ohi town assembly, said the local economy had been affected bythe shutdowns.

"Largely understanding the necessity of nuclear power and taking into considerationresidents' opinions as well as the impact on consumers' livelihoods and the economy, wedecided to agree to a restart," he said in a statement.

Ohi received about US$31 million in subsidies in the financial year to March 2010 relatedto Kansai Electric's four reactors. Many jobs also depend in some way on the plant.

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