* Biggest power users worry at high power costs, power cuts
* Says manufacturers' shift to abroad to accelerate
* Govt unclear about conditions on restarts (Adds company comment, background)
TOKYO, Feb 22 (Reuters) - An industry body for Japan (EUREX: FMJP.EX - news) 's steelmakers, the nation's biggest electricity users, urged the early restart of nuclear power plants on Wednesday, worried that potential power cuts and higher electricity charges will further squeeze a sector already reeling from the strong yen.
Big businesses have reacted furiously to plans by Tokyo Electric Power Co, or Tepco, to raise charges but had refrained from calling for the restart of reactors, wary of an angry response from a public worried about nuclear safety due to the Fukushima radiation crisis.
Public safety fears since Fukushima have prevented the restart of reactors shut for routine checks, forcing utilities to import more fossil fuels and gas to run their power generators and supply electricity, hitting their profits and prompting them to raise charges for industrial users from April.
The last two of Japan's 54 reactors still operating are due to close by late April, and none can restart until they receive clearance from the central and local governments after meeting new safety checks to confirm they can withstand earthquakes and tsunami on the scale that wrecked Tepco's Fukushima Daiichi plant.
"The smooth restart of nuclear power plants after safety checks is very important for Japanese manufacturers," said Eiji Hayashida, chairman of the Japan Iron and Steel Federation.
"Utilities (Santiago: UTILITIES.SN - news) other than Tepco will also be forced to raise electricity charges if they have to turn to gas-fired plants.
"That will further increase our production costs and accelerate manufacturers' drive to shift production abroad," said Hayashida, who is also president of JFE Steel Corp , the world's fifth-biggest steelmaker.
The government's nuclear safety watchdog approved first-stage stress tests on an initial pair of idled reactors early this month, but the government has yet to make clear if second-stage stress tests -- simulations in which a nuclear plant is exposed to several severe events at the same time -- are also necessary.
Tepco decided last month to raise electricity prices for businesses by an average 17 percent, citing a higher import bill as it shifts to fossil fuel-fired power generation amid public concerns over the safety of nuclear power. (Reporting by Yuko Inoue; Editing by Michael Watson)
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