Tepco urged to consider state control
Japanese Trade Minister Yukio Edano urged Tepco to consider temporarily going under state control.
According to Reuters, the Japanese government may inject about $13 billion into Tepco as early as next summer, effectively nationalising it via a purchase by a government-run bailout fund of newly issued Tepco shares.
This is to cover Tepco's massive compensation and cleanup costs after an earthquake and tsunami on March 11 triggered the world's worst nuclear crisis in 25 years at the Fukushima plant, putting the firm's future in doubt.
"Tepco's financial base must be fundamentally strengthened if it is to pull off the cleanup from the nuclear disaster without a hitch, decommissioning the reactors and compensating victims swiftly and in earnest," Edano told Tepco President Toshio Nishizawa.
Tepco and the government-backed bailout body are aiming to come up with a comprehensive business plan by March that will include restructuring steps and possible electricity rate hikes.
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Tags: trade minister, nationalization, government control, Japan nuclear crisis
