TOKYO (majirox news) — Tokyo Electric Power Co. (TEPCO) will need to pay victims of the Fukushima nuclear crisis compensation of at least 4.5 trillion yen ($58.69 billion) by the end of March 2013, according to calculations made Oct. 3 by a government task force entrusted with reforming the utility.
The task force presented Prime Minister Yoshihiko Noda with a report suggesting TEPCO could pay the bill by slashing costs by 2.54 trillion yen ($33.12 billion) over a decade and selling off assets.
“Restructuring and selling off assets will give strong capital support,” Kazuhiko Shimobe, the chairman of the task force, said.
TEPCO has responded to the report by formulating a business plan that will start from the end of this month and include more layoffs, in addition to requesting support from the nuclear power compensation support fund.
The task force calculated compensation for businesses affected by false rumors about the effects of the nuclear crisis to by 2.6 trillion yen ($33.91 billion), while compensating for evacuation and obstruction of business will cost TEPCO 1.2 trillion yen ($15.65 billion) in the first year and 897 billion yen ($11.70 billion) in the second year. These costs alone total 4.5 trillion yen, on top of which TEPCO must bear the cost of compensating long-term business losses and decontamination, so the total amount will increase even further. The panel also estimated the cost of disposing of the four nuclear reactors at the radiation-leaking Fukushima Daiichi nuclear power plant will cost about 1.5 trillion yen ($19.56 billion).
The task force recommended TEPCO cut its workforce by 3,600, slash administrative staff wages by 20% for a decade and lower interest rate payments on pension funds by 25.
TEPCO was advised to sell off assets including real estate, securities and subsidiaries or affiliates.