Tokyo Electric Power Co will in effect be nationalised for at least 10 years and is expected to become profitable in its 2013 business year, under a plan by a government body for funding nuclear disaster compensation, Kyodo news agency reported on Saturday.
The public fund is expected to inject 1 trillion yen ($12.97 billion) into the operator of the crippled Fukushima Daiichi nuclear power plant in a de facto nationalision of the firm, the news service said, citing sources close to the matter.
The electricity company, also known as Tepco, and the state-backed entity are working to put together a business plan for the firm, expected to be finalised by both parties in March. The business plan is intended to prevent Tepco from becoming insolvent from the heavy costs associated with the world's worst nuclear crisis in 25 years. It will also ensure that compensation payments related to the accident at the plant following the March 11 earthquake and tsunami are made promptly. A Tepco spokeswoman said that nothing had yet been decided. Conditions attached to the fund injection may also include letting outside directors oversee Tepco's management, Kyodo said in a separate report, in a move aimed at improving its management supervision and corporate governance.
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