information about Fukushima published in English in Japanese media info publiée en anglais dans la presse japonaise
9 Novembre 2012
November 9, 2012
Tokyo Electric Power Co.'s new management policy for rehabilitation is expected to face difficulties in the future, as the government is hesitant to consider providing additional support for the utility.
The new management policy announced Wednesday by TEPCO makes clear the utility's responsibility for the crisis at the Fukushima No. 1 nuclear power plant and stipulates that the firm will focus on reconstruction work in Fukushima Prefecture.
The plan also says TEPCO will ask the government to consider new support measures to help it bear the costs of the decommissioning of the Fukushima plant's reactors and decontamination work in affected areas.
"In order to fulfill the responsibilities for issues such as compensation for victims of the crisis and decommissioning of the reactors, we definitely need the government's special consideration," TEPCO Chairman Kazuhiko Shimokobe said at a press conference Wednesday.
The compilation of the new management policy was led by TEPCO board members from outside the firm. The government was involved in the selection of the outside directors, and all seven outside directors, including Shimokobe, attended the press conference.
Based on the new management policy, TEPCO said it would establish its reconstruction head office in Fukushima Prefecture as early as January, and Yoshiyuki Ishizaki, TEPCO's new executive vice president, will be appointed to head the new office and work onsite.
By establishing the new office, to be staffed with 4,000 employees, TEPCO will beef up the smooth payment of compensation as well as its decontamination work. The utility also plans to establish an institution in the prefecture to study how to promote the decommissioning of the Fukushima plant's reactors.
TEPCO will ask for the government to provide additional support because it is difficult for the firm to promote its management reconstruction under the current support scheme. "We don't know how many years our employees will be able to maintain their current morale," said Takao Kashitani, one of the utility's outside directors and a certified accountant.
TEPCO also said costs for compensation and decontamination work could far exceed the government's assistance limit of up to 5 trillion yen, possibly rising to more than 10 trillion yen.
Goshi Hosono, former state minister for the nuclear crisis, indicated the government would take responsibility for decontamination work in areas where annual radiation doses were 1 millisievert or more. If the plan is realized, areas where decontamination work should be carried out will be expanded. TEPCO's new estimate reflects the possible change.
At the press conference, TEPCO also announced its estimate that if the firm paid 213 billion yen every year with support from other utilities, it would take 23 years to repay 5 trillion yen to the government. "It will be difficult for just one company [to shoulder further burdens]," said Fumio Sudo, another outside director, who is an advisor to JFE Holdings, Inc.
TEPCO also plans to call for the government to review its comprehensive special business plan, which was approved by the government in May this year, as early as next spring.
The government initially planned to consider how to share responsibilities for the crisis at the Fukushima plant as early as this summer, but the plan has been shelved due to confusion surrounding the current political situation.
"We hope the government will face its responsibility squarely," Shimokobe said.
However, it is still unclear whether the government will move forward with the discussion given the current situation.
With the dissolution of the House of Representatives and the lower house election looming, if the government provides TEPCO with additional support, it could be perceived by voters as relief measures for TEPCO, prompting many government officials to express concern. "The timing is bad," a senior official at the Economy, Trade and Industry Ministry said.
November 8, 2012
Tokyo Electric Power Co. has asked for a fundamental review of its comprehensive special business plan, suggesting the possibility decontamination costs and compensation for victims of the accident at its Fukushima No. 1 nuclear power plant may be double the current forecast.
According to a copy of TEPCO's new management plan for rehabilitation, which was obtained by The Yomiuri Shimbun before TEPCO announced it Wednesday, the utility estimates the cost of the disaster may double from the current projection of up to 5 trillion yen.
TEPCO also vows in the plan to reinforce decontamination efforts in areas affected by the crisis and ensure compensation for victims of the nuclear accident.
However, the utility says it alone will not be able to shoulder all of the costs, requesting a new framework in which the government and TEPCO would share the financial burden.
The current special business plan was created jointly by TEPCO and the government this spring. It stipulates tasks for the rehabilitation of the company and how assistance will be provided for the utility's compensation payments.
Under the scheme, the government helps TEPCO pay compensation by providing government bonds, which can be cashed in each time the amount in a compensation lot is finalized.
The government also used 1 trillion yen in public funds to buy TEPCO shares, effectively making it a state-controlled firm.
The latest management plan was compiled by the new board members, including government-appointed Chairman Kazuhiko Shimokobe, to review TEPCO's rehabilitation and how compensation should be paid in the future.
Shimokobe was formerly chairman of the steering committee of the Nuclear Damage Liability Facilitation Fund.
The framework for assistance to the utility under the current plan is problematic because TEPCO now estimates the total cost of compensation and decontamination work may surpass the government's initial forecast of 5 trillion yen.
TEPCO's new plan predicts about 5 trillion yen in additional costs, including the cost of temporarily storing contaminated waste.
As of now, decommissioning the Fukushima plant's reactors is predicted to cost about 1 trillion yen, but TEPCO predicts the actual cost will be much higher.
TEPCO said it will not be able to singlehandedly shoulder the costs of decommissioning and other work to ensure reconstruction progress in disaster-hit areas, as the burden will be too great.
If the situation is ignored, TEPCO will effectively fail and become a company that is endlessly trying to repay government loans.
Should this happen, some observers fear TEPCO will be unable to borrow from financial institutions or effectively become a state-owned corporation wholly supported by the government.
As such state-owned corporations are managed using taxpayers' money, it is possible the financial burden on the public will increase.
However, the new plan with government support places top priority on compensation and decommissioning work at any cost.
The plan specifies all of TEPCO's 38,000 employees will work together on a rotational basis for the common goal of reconstruction.
It also states TEPCO will establish a Fukushima head office with 4,000 employees to facilitate compensation payments, reconstruction work and job-building efforts in disaster-hit areas.
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