New public financial aid for Tepco approved

7 years ago by in Business, Featured

Japanese authorities decided on Monday to supplement by Y690 billion ($8.9 billion) the financial help for Tokyo Electric Power Co., the operator of the Fukushima nuclear plant, after the company modified its estimation for the necessary compensations to victims of the March 2011 accident.

Tepco had said that the initial estimate of Y1.01 trillion had to be revised up to Y1.7 trillion.

The company has already received about Y890 billion, so the total financial help from the government reaches Y1.58 trillion. Tepco will have to cover the difference to Y1.7 trillion from other sources.

The decision for the new financial aid came after a meeting between Tepco’s president Toshio Nishizawa and industry minister Yukio Edano on Monday.

Edano said at the meeting that the state would take partial control of the nuclear utility. “As long as I hold this post, I will absolutely not approve a plan that asks for a capital injection but does not offer adequate voting rights (to the government), commensurate with the money,” Edano told Nishizawa.

An action plan on the restructuring of the utility and the compensations that are to be paid to victims is expected next month from Tepco and the Nuclear Damage Liability Facilitation Fund, a state-backed organization.