$24.6 billion — estimated TEPCO liability

 Reuters reported just a little while ago:

Tokyo Electric Power may face liabilities of 2 trillion yen ($24.6 billion) over 10 years for damage stemming from its crippled nuclear power plant, and it could hike its electricity fees to help pay the money, Japan’s Asahi newspaper reported on Tuesday, citing a draft government calculation.

Officials from the government, Tokyo Electric , and creditor banks have been scrambling to craft a scheme that would allow the utility to cope with the bill of compensating those displaced by the crisis at its Fukushima Daiichi plant while staying in business as a private firm.

The scheme under discussion would create a fund to provide loans for and buy preferred shares from Tokyo Electric, commonly known as Tepco. Other utilities would pay premiums as a buffer against future accidents, and Tepco would repay the fund from its profits over several years, sources with knowledge of the talks have told Reuters.

The Asahi reported that the fund would have a total value of 4 trillion yen to be paid in over 10 years, half of which would come from Tepco, which supplies about a third of all electricity in Japan. Japan’s other utilities will pay in premiums based on how much electricity they produce, according to the report.

Tepco may raise its electricity fees by 16 percent to help cover its payments, the paper added.

That much less that TEPCO has to spend on new nuclear projects….

Link: http://af.reuters.com/article/energyOilNews/idAFL3E7G305M20110503

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About Robert Singleton

By day, I work for a call center. In my spare time, I try to save my hometown (and planet) from a nearly constant onslaught of greedheads, lunatics and land developers. I live in a fictional town called Austin, Texas, where I go to way too many meetings.
This entry was posted in Expansion, Japan, Radiation leak, Reactor problems and tagged , , . Bookmark the permalink.

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