Operation of Mutual Assistance System for Disaster Recovery Funds

Operation of a system to share costs by considering disasters as national issues

In light of the recent intensification of disasters and in order to respond to the increase in costs due to larger-scaled and prolonged response measures for restoration from a blackout or other causes, a system to share costs by considering disasters as national issues (mutual assistance system for disaster recovery funds) was established through the amendment of the Electric Business Act in June 2020, and OCCTO has commenced operation of the system since April 2021.

Affected power transmission and distribution companies may use this system for the costs contributing to the early restoration from a blackout, such as 1) the cost related to support from other power transmission and distribution companies, and 2) the cost for temporary restoration expected to restore electricity more quickly than full restoration that are incurred upon a disaster that meets certain criteria. Affected power transmission and distribution companies are also required to share the costs up to a certain level (10% of the subject amount) so that the amount of funds to be contributed by the respective power transmission and distribution companies in preparation for future disasters will not become excessive. In addition, the national government will also be involved institutionally as it checks the operation status based on the reports from OCCTO.

(Reference) Partial amendment of operation based on the circumstances after Noto Peninsula Earthquake

When the Noto Peninsula Earthquake happened on January 1, 2024, it took a long time to implement temporary restoration measures, and the procedures for application from the affected companies based on this system were expected to be prolonged and expanded; therefore, we implemented partial operational changes to enable flexible responses to the extent possible in April 2024 based on the actual circumstances of the damage and response measures for such large-scale disasters.

For example, when an affected company is unable to prepare an application within six months from the start date of the application for this system, such a company may normally submit an additional application only once within a further six months from the day following the initial application date; however, we have made changes to remove the deadline and limits on the number of such additional applications when the government designates the disaster as a specified extraordinary disaster or as a disaster of extreme severity and when there is a special reason.