In a report in Bloomberg news TEPCO shares lost value because of possible future compensation claims. The report goes on to say that compensation costs may excede $100 billion. TEPCO may be unable to pay this much.
Tokyo Electric Power Co. (9501) led a plunge in Japanese utility shares after an upper house committee approved a bill to allow more compensation claims against the operator of the crippled Fukushima Dai-Ichi reactor.
Tokyo Electric, known as Tepco, fell 6 percent to close at 612 yen on the Tokyo Stock Exchange, the lowest since May 15. Japan’s upper house committee earlier approved a bill to allow those affected by the March 2011 disaster to seek compensation even after the expiry of a three-year statutory period, a spokesman at the parliament said, confirming a Kyodo News report.
Tepco faces more than 11 trillion yen ($108 billion) in estimated costs, including compensation payments, after the quake and tsunami two years ago caused three meltdowns and radiation leaks, forcing about 160,000 people to evacuate. Tepco had paid more than 2.2 trillion yen in compensation by the end of April, it said last month.
Even with today’s decline, the stock has risen almost threefold this year, the best performer among the 82 securities in the MSCI World/Utilities Index. Four other regional power companies from Japan are also among the best-performing utilities on the index this year.
So far 160,000 have lost their homes. The government seems ready to continue supporting nuclear power.
- Tepco dodging liability because of takeover – UN (morningstaronline.co.uk)
- Lesson6:Reform the Japanese power system. Nationalize Tepco. (fantasticadays.wordpress.com)
- Bill approved to file suits against TEPCO after 3-yr limit runs out (english.kyodonews.jp)