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The government and Tokyo Electric Power Company (TEPCO) are set to begin negotiations over the amount of funding the utility should receive from a government-backed entity in order to strengthen its financial standing.
TEPCO has said that its liabilities may exceed its assets by the end of 2012 due to its compensation of families affected by the Fukushima nuclear crisis and the cost of decontamination, NHK reported.
Furthermore, TEPCO estimates that it will need to pay an additional 800 billion yen by the end of March to run thermal power plants, in addition to compensation payments.
In total, TEPCO is seeking 1.7 trillion yen from the Nuclear Damage Compensation Facilitation Corporation up from a previous 1.01 trillion yen. TEPCO says the increase results from government moves to widen eligibility criteria for claimants and to alter the evacuation zone restrictions around the stricken plant.
Industry Minister Yukio Edano has asked TEPCO to compile a business plan by the end of March. The plan will include measures to improve the utility's financial standing, including a hike in electricity fees for corporate users first in summer, and then for households later, possibly in autumn.
However, Edano indicated last week that any hike in electricity rates should be kept to a minimum and that the government might have to nationalize TEPCO temporarily. It would do this by having the Nuclear Damage Compensation Facilitation Corp buy up TEPCO shares.
Meanwhile, Japanese banking institutions, which have a stake in the Nuclear Damage Compensation Facilitation Corp, say government assistance is necessary if they are to continue supporting the entity, NHK reported.
The banks say that the government and TEPCO must settle the public funding issue this month, ahead of the end of TEPCO's fiscal year on March 31.
© Japan Today
9 Comments
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minello7
Maybe they could start by getting back those donations given to the members of the nuclear safety panel. I wonder how much money those panel members donated to those who suffered after the disaster ??? www.japantoday.com/.../nuclear-safety-panel-received-donations-from- industry-report
MaboDofuIsSpicy
How come these have not been used all along?
sf2k
nationalize them, sell off their country clubs and golf courses, do things that are for the people and not the buddy buddy system.
Not going to happen. This is just PR damage control.
soldave
Surely the majority of money will go to end of year bonuses for being able to "shut down" the reactor within their timeframe, and then the rest will cover the donations given to the nuclear safety panel.
Maybe a bit of cash left over for a massage chair or two and some baseball gloves.
ka_chan
Arrest the board and company officials since the international report said that the plant staff was not properly trained and the company had no plan. If the government has to give that kind of money, national and make one electric grid instead of two. Make all of Japan 60 Hz 100 volts!
nath
Why are they being so lenient with TEPCO and allowing those criminals to hike rates on corporate and household consumers?!? It was their fault for being so negligent with the construction and emergency procedures of the plant! Of ever, the company should be wholly nationalized with management sent to special Fukushima based prison facilities.
nath
The first step should be complete overhall of TEPCO: management, safety and security standards, policies, strategies, etc, before even looking into any negotiations. If government is serious about its reputation as far as nuclear energy is concerned, then some heads must roll! The Tsunami not withstanding, the world knows (which may not be true and maybe thanks to media) that TEPCO has irreversibly polluted the global environment through carelessness and lack of foresight, robust nuclear safety and security procedures. PLEASE UNDERSTAND THAT NUCLEAR RADIATION POLLUTION IS NOT LIMITED TO JAPAN ONLY. The world is watching and believe me, anything less than a revamp of TEPCO, other similar companies and the nuclear plant inspectors will not be taken seriously. It seems as if to say "WE ANNOUNCED THE OTHER DAY OF A COLD SHUTDOWN; WE ARE OFF THE HOOK AND NOW EVERYTHING SEEMS OK AND PEOPLE ARE RELAXED. LETS NOW SHARE THE SPOILS AND LAUGH ALL THE WAY TO THE BANKS". Since the world (and Japan) has lost confidence in TEPCO, the proposed TEPCO business plan should be drafted by an independent international consultancy firm (not TEPCO officials), and should among other strategic outputs include revamp of TEPCO...no tricks!!!!!!
Cricky
Negotiate????
Negotiate what?, they are only afloat due to tax payer money, Where are the charges, arrests and actual responsibility. Corruption at all levels sucking up tax payer money.