ID :
179689
Tue, 05/03/2011 - 18:27
Auther :
Shortlink :
https://oananews.org//node/179689
The shortlink copeid
Funds from utilities eyed for entity to pay TEPCO nuclear compensation
TOKYO, May 3 Kyodo - The government is planning to seek contributions from the electric power industry for an envisaged entity to help Tokyo Electric Power Co. pay compensation over radiation leaks at its Fukushima Daiichi nuclear power plant, government sources said Tuesday.
Under the plan, the plant operator, known as TEPCO, will be required in principle to shoulder all the compensation, but if it faces a fund shortage, the envisaged entity will make up for the remainder using contributions from electric power companies operating nuclear power plants, the sources said.
The plan, however, is drawing opposition from some Cabinet ministers and ruling party members, making it difficult for the government and ruling coalition to reach a conclusion on the framework for the new entity by next week as targeted, the sources said.
The opponents are calling for the temporary nationalization of TEPCO, insisting such a step would be unavoidable to ensure the huge compensation payments by the company, they said.
According to private-sector estimates, the compensation to be paid by TEPCO is likely to amount to 3 to 4 trillion yen. With no end to the nuclear crisis in sight, the amount could expand further.
Several hydrogen explosions occurred at the Fukushima nuclear complex after the devastating March 11 earthquake and tsunami crippled the emergency cooling systems there. The plant has been leaking radioactive substances, forcing residents near the plant out of their homes and damaging the agriculture, livestock and fishery industries due to concerns about food safety.
In addition to contributions from the electric power industry, the government plans to issue a type of government bond without interest to the entity so that it can be cashed in when necessary, the sources said.
If public fund injections are necessary for TEPCO, the new entity will purchase preferred shares from the company, they said.
The government is also considering shouldering part of the compensation as an exceptional case if it becomes difficult for TEPCO to pay due to another disaster, the sources added.
But the Cabinet ministers and ruling party members calling for the temporary nationalization of TEPCO have said providing such generous state support to TEPCO would not be accepted by those affected by the nuclear crisis, they said.
It appears, however, that the opponents of the plan have yet to hold full discussions on how to nationalize and later reprivatize TEPCO.
Under the plan, the plant operator, known as TEPCO, will be required in principle to shoulder all the compensation, but if it faces a fund shortage, the envisaged entity will make up for the remainder using contributions from electric power companies operating nuclear power plants, the sources said.
The plan, however, is drawing opposition from some Cabinet ministers and ruling party members, making it difficult for the government and ruling coalition to reach a conclusion on the framework for the new entity by next week as targeted, the sources said.
The opponents are calling for the temporary nationalization of TEPCO, insisting such a step would be unavoidable to ensure the huge compensation payments by the company, they said.
According to private-sector estimates, the compensation to be paid by TEPCO is likely to amount to 3 to 4 trillion yen. With no end to the nuclear crisis in sight, the amount could expand further.
Several hydrogen explosions occurred at the Fukushima nuclear complex after the devastating March 11 earthquake and tsunami crippled the emergency cooling systems there. The plant has been leaking radioactive substances, forcing residents near the plant out of their homes and damaging the agriculture, livestock and fishery industries due to concerns about food safety.
In addition to contributions from the electric power industry, the government plans to issue a type of government bond without interest to the entity so that it can be cashed in when necessary, the sources said.
If public fund injections are necessary for TEPCO, the new entity will purchase preferred shares from the company, they said.
The government is also considering shouldering part of the compensation as an exceptional case if it becomes difficult for TEPCO to pay due to another disaster, the sources added.
But the Cabinet ministers and ruling party members calling for the temporary nationalization of TEPCO have said providing such generous state support to TEPCO would not be accepted by those affected by the nuclear crisis, they said.
It appears, however, that the opponents of the plan have yet to hold full discussions on how to nationalize and later reprivatize TEPCO.
