Japanese govt may take control of nuke plants from private utilities

The Japanese government may take control of the nation's nuclear power plants away from private utilities, in a bid to improve accountability.

The move comes as Tepco has fallen under criticism for its handling of the crisis at the Fukushima Daiichi nuclear plant.

"Japan should avoid a situation where private companies own nuclear power facilities and only enjoy the benefits (of low running costs) when the state takes care of compensation and decontamination arising from nuclear accidents," Trade Minister Yukio Edano, who oversees energy policy, was quoted as telling the paper.

Edano also said the government must reach a clear decision on whether private companies should pay massive insurance fees and operate nuclear power facilities or hand over the benefits to the state, which also would take on the risks of nuclear accidents, according to the paper.

Edano reiterated that it was highly likely Tepco would be put under a state control but that he did not see it as a permanent move as private firms should basically be responsible for supplying electricity, the Yomiuri said.

Through the overhaul, the government is likely to seek the public's understanding on the restart of nuclear reactors shut for regular maintenance, it added.

The Nikkei business daily reported that the trade ministry was considering separating licensing system for power generation, transmission and retailing as part of power sector reform aimed at opening it up to smaller players.