Tepco agrees conditions for state aid to compensate victims of nuclear crisis

Tepco agrees conditions for state aid to compensate victims of nuclear crisis

2011-05-12 02:20:03 GMT+7 (ICT)

TOKYO (BNO NEWS) -- Tokyo Electric Power Co. (Tepco) on Wednesday decided to accept the government's conditions for the aid to compensate victims of the Fukushima nuclear power plant crisis.

According to the Japan Times, Tepco agreed to maximum cost-cutting efforts, not capping compensation payments in advance and allowing an investigation into its management to be conducted by a third-party panel appointed by the government.

The conditions were introduced on Tuesday to Tepco President Masataka Shimizu after he asked for help in the elevated compensation payments for the radiation-related problems stemming from the nuclear crisis.

It is estimated that Tepco will face trillions of Yen in compensation demands. In order to cope with the amount, the Japanese company is considering selling more than ¥500 billion ($6.17 billion) worth of assets.

In addition, Tepco will cut over ¥350 billion ($4.32 billion) in expenditures from publicity and wages over the next two years to free up more money. The company will also freeze dividend payments on its common shares for five to 10 years.

The government and Tepco are finalizing details on a support regimen to help the utilities as well as the establishment of a special institution to manage the compensation payments.

Tepco also announced that it received an order for the Nuclear and Industrial Agency for the modification on the Safety Regulations on Nuclear Reactor Facilities as there must be two operable emergency generators during cold shutdown and fuel replacement.

Currently, the emergency generating facilities of the Fukushima Daiichi nuclear power station were shut down due to some troubles although the offsite power has been restored.

The Fukushima power plant was severely damaged on March 11 when a 9.0-magnitude earthquake and a subsequent tsunami devastated the country. The disaster disabled the cooling systems of the plant, and radioactive elements leaked into the sea and were later found in water, air and food products in some parts of Japan.

Last Thursday, workers entered the no. 1 nuclear reactor building at power plant for the first time since the beginning of the crisis in order to install a ventilating device as part of the efforts to reduce the high level of radioactivity inside the building.

The International Atomic Energy Agency (IAEA) informed that the situation at the Fukushima Daiichi nuclear power plant remains very serious. The core damage for Units 1, 2 and 3 are of 55 percent, 35 percent and 33 percent respectively as of April 27.

The government approved a 4 trillion yen ($48.89 billion) emergency budget to finance the early phase of reconstruction. In addition, the evacuation zone was expanded beyond the initial 20-kilometer (12.4-mile) radius surrounding the damaged plant.

At least 14,294 people were killed, while some 13,000 people remain missing due to devastating earthquake and tsunami. Japanese officials have called it the worst crisis since the end of World War II.

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