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Page added on January 21, 2012
Tepco to be nationalised for 10 years
* Govt body expected to inject 1 trln yen in Tepco -Kyodo
* Tepco expected to move into black in 2013 business year-Kyodo
* Utility may be forced to let outside directors run firm-Kyodo
TOKYO, Jan 21 (Reuters) – Tokyo Electric Power Co will in effect be nationalised for at least 10 years and is expected to become profitable in its 2013 business year, under a plan by a government body for funding nuclear disaster compensation, Kyodo news agency reported on Saturday.
The public fund is expected to inject 1 trillion yen ($12.97 billion) into the operator of the crippled Fukushima Daiichi nuclear power plant in a de facto nationalision of the firm, the news service said, citing sources close to the matter.
The electricity company, also known as Tepco, and the state-backed entity are working to put together a buiness plan for the firm, expected to be finalised by both parties in March.
The business plan is intended to prevent Tepco from becoming insolvent from the heavy costs associated with the world’s worst nuclear crisis in 25 years.
It will also ensure that compensation payments related to the accident at the plant following the March 11 earthquake and tsunami are made promptly.
A Tepco spokeswoman said that nothing had yet been decided.
Conditions attached to the fund injection may also include letting outside directors oversee Tepco’s management, Kyodo said in a separate report, in a move aimed at improving its management supervision and corporate governance.
A government official told Reuters this week that the adoption by Tepco of a company-with-commitees system, where execution and supervision for corporate management are separate, may be a requirement for receiving the funds.
To emerge from de facto nationalisation as early as March 2022, Tepco will be expected to pay back the financial assistance it has received from the fund, using half of its pretax profit earned every year, Kyodo said.
Asia’s largest utility would remain a listed company, Kyodo said, adding however, that if Tepco’s business condition significantly deteriorates, it may be delisted.
2 Comments on "Tepco to be nationalised for 10 years"
Kenz300 on Sun, 22nd Jan 2012 2:15 am
Surprise…surprise….TEPCO is broke and the taxpayers will have to pay for the clean up. Nuclear energy is too dangerous and too costly. This disaster is far from over…. They are still adding costs to the Chernobyl clean up and that happened 25 years ago.
DC on Sun, 22nd Jan 2012 3:08 am
Its a sign of maddness that huge companies like BP and Tepco can do immense damage, that in many cases will never be repaid, and still exist as discreet entities. BP and Tepco, by all rights should have become in-solvent the second those disasters hit. But no, BP exists and contines to profit, and now, the plan is for tepco to do the same.
Profitable? is that all they care about? How will profit undo the damage the corporate terrorists do, and will keep doing, even thousands of years from now when no one will know what a BP or Tepco even is If humans still exist, they will keep paying the price.