Grid separation and executive personnel

Director personnel of Tokyo Electric Power Holdings (HD) attracts attention from the power industry. President Yoshinori Kaneko of Power Grid (PG) is scheduled to resign as director of HD, the parent company, after a general meeting of shareholders in June 2019.

President of TEPCO Fuel & Power Seiji Moriya and President of Energy Partner Nobuhide Akimoto will also serve as directors of HD. Only the president of PG will be excluded from the director of the parent company.

Offense and defense with the Surveillance Commission

The monopoly of the NW will continue after the separation of Grid after April 2020. For this reason, its neutrality is strongly demanded, and it is well known that legal regulations will continue. It seems that there was a strong request from the Electricity and Gas Market surveillance Commission (Surveillance Commission) over the treatment of Mr. Kaneko. It is the supervisory committee’s decision that there is a problem from the viewpoint of conduct regulation and information blocking that the president of the NW concurrently serves as the HD director.

Related to the director’s personnel affairs, and TEPCO seems to have resisted considerably. However, some members of the Surveillance Commission said, “If Mr. Kaneko is to serve as a director of HD, he should leave according to the matter of the board of directors, and as a proof, the video shot of the board of directors should be submitted, etc., TEPCO ultimately abandoned it.

The spread to power utilities and the deep understanding of Tohoku Electric Power

It is not only TEPCO that legal neutrality is required. The same is true for other power companies. At present, most electric power companies have head office directors at the top of the transmission and distribution division preparation company. These people are thought to assume the presidentship of the power transmission and distribution company separated in April 2020. However, looking at TEPCO’s precedents, it is thought that the Surveillance Commission strongly interferes with the position that the top of the power transmission and distribution company will also hold the position of director of the parent company. It is very likely that they will be forced to choose between a transmission and distribution company or a parent company.

Even so, does this separation of executive personnel have no negative impact on future power management? If it is not permitted to be dually appointed, will the path from the transmission and distribution company top to the parent company’s electric power director and eventually to the top also be closed?

Hokkaido Electric Power Co., Ltd. will be President Yutaka Fujii at the General Meeting of Shareholders in June. In the future, such a personnel measure will have such anticipation that dissidents will appear from the Surveillance Commission.

 

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