Govt approves TEPCO damages plan

The government has approved a special business plan for Tokyo Electric Power Company, allowing the injection of about 11.5 billion dollars worth of public funds to help the utility pay compensation for the Fukushima nuclear accident.

On Friday, Economy, Trade and Industry Minister Yukio Edano conveyed news of the approval to TEPCO president Toshio Nishizawa and to Kazuhiko Shimokobe, who chairs the decision-making board of a government-backed fund to help provide compensation for damages.

Under the business plan, jointly worked out by TEPCO and the fund, about 11.5 billion dollars worth of public funds will be offered to TEPCO to help it compensate the people and businesses affected by the nuclear accident.

TEPCO is called on to cut spending to the tune of about 32 billion dollars over 10 years, through measures including lowering the interest rates on corporate pensions for retirees from the current maximum 5.5 percent to less than half that.

The size of the financial aid package is the minimum that allows TEPCO to pay compensation without going into the red for the time being.

Despite the plan, TEPCO will continue to be financially strapped because of the huge estimated costs of decontaminating areas affected by the accident and of decommissioning the crippled reactors.

TEPCO will compile a new comprehensive business plan jointly with the fund next spring, and will be required to continue its drastic management restructuring.

Friday, November 04, 2011 13:19 +0900 (JST)