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Tepco asked to consider temporary state control | |
(about 4 hours later) | |
Tokyo Electric Power Company (Tepco), which operates Japan's disaster-hit nuclear plant, has been asked to consider temporary state control. | |
Energy minister Yukio Edano suggested it as one possible way to try to strengthen its financial position. | |
Tepco has also asked for an extra 690bn yen ($9bn; £5.6bn) to compensate victims of the nuclear crisis. | |
The firm has already received $7.1bn in public funds. It faces claims and costs of almost $100bn. | |
"Tepco's financial base must be fundamentally strengthened if it is to pull off the clean-up from the nuclear disaster without a hitch, decommissioning the reactors and compensating victims swiftly and in earnest," Mr Edano said. | |
During a meeting with Tepco president Toshio Nishizawa, he called on the power firm to "consider a comprehensive business plan without excluding any options, including temporary state control". | |
Tepco runs the disaster-struck nuclear plant at Fukushima Daiichi which was damaged by the March tsunami. Some 80,000 people had to be evacuated after a radiation leak. | |
Nationalisation? | Nationalisation? |
Tepco provides almost one-third of Japan's electricity, and powers some of the most economically important areas of the country. A failure of the company would have disastrous consequences. | |
Mr Edano met Tepco's president following a meeting of cabinet ministers which discussed Tepco and electricity reform. | |
Speaking to reporters after the meeting, Mr Nishizawa said: "There were various instructions, or rather opinions, expressed by the minister today. | |
"We would like to move forward in compiling our comprehensive special business plan based on that," Mr Nishizawa said. | |
Last week, Japanese media reported that the government may pick up a two-thirds stake in Tepco, a move that would effectively nationalise the company. | |
Tepco and the government had both denied the reports at that time. | Tepco and the government had both denied the reports at that time. |
Desperate times | Desperate times |
Tepco, Japan's biggest utility provider, has been facing an uncertain future since the March earthquake and tsunami. | Tepco, Japan's biggest utility provider, has been facing an uncertain future since the March earthquake and tsunami. |
Last week, the company announced that it was raising electricity prices for corporate clients for the first time in more than 30 years, due to a higher cost of operations. | Last week, the company announced that it was raising electricity prices for corporate clients for the first time in more than 30 years, due to a higher cost of operations. |
Its latest request for additional funds for compensation came after a committee addressing compensation disputes decided on additional measures to compensate victims who voluntarily evacuated, Tepco said in a statement. | |
The quake and tsunami forced it to shut 15 of its 17 nuclear power plants, and resort to thermal power stations for electricity generation, increasing its fuel costs. | The quake and tsunami forced it to shut 15 of its 17 nuclear power plants, and resort to thermal power stations for electricity generation, increasing its fuel costs. |
To make matters worse, a panel investigating the Fukushima nuclear disaster has chastised the company for being ill-prepared for such a calamity. | To make matters worse, a panel investigating the Fukushima nuclear disaster has chastised the company for being ill-prepared for such a calamity. |
It said response failures and the general lack of preparation in the event of an emergency worsened the effects of the nuclear accident at the Fukushima nuclear plant. |