TEPCO stock falls to lowest level since 1974; Company claims right to raise rates to compensate for losses

Bloomberg Businessweek reported today:

Tokyo Electric Power Co. shares fell to the lowest in at least 37 years after Trade and Industry Minister Yukio Edano said the company should consider being nationalized.

The stock fell 12 percent to close at 186 yen, the lowest since at least September 1974, on the Tokyo Stock Exchange. It was the worst performer among the benchmark Topix 1,659 members.

Tepco’s shares have plunged 91 percent since the day before the March 11 quake and tsunami wrecked the utility’s Fukushima Dai-Ichi nuclear station, wiping out about 3.1 trillion yen ($39 billion) in market value, according to data compiled by Bloomberg.

TEPCO has plans to reverse the stock slide:

To avoid the collapse of the company, Tepco needs “an increase in electricity rates or a restart of its nuclear reactors,” said Aoki.

On Dec. 22, the company said it plans to raise electricity rates for companies from April and seek approval from the government to raise tariffs for households.

“Making a request to raise electricity rates is a right and an obligation as a utility,” Nishizawa said when the company announced the plan.

Here’s a link to the Businessweek article: http://www.businessweek.com/news/2011-12-28/tepco-falls-to-lowest-since-1974-on-possible-government-takeover.html

 

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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 Finance, Fukushima, Japan, TEPCO and tagged , , , . Bookmark the permalink.

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