Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

Loading, please wait

TEPCO Doubles Estimate for Fukushima Clean Up to $125 Billion

By
Posted on Wed, 07 November 2012 23:21 | 1

Tokyo Electric Power Company (TEPCO) has said admitted that the cost of cleaning up after the Fukushima disaster and paying off the compensation claims made may double from the five trillion yen it had estimated back in April, to ten trillion yen ($125 billion).

The company released a statement today that said, “there is a view that we may need the same amount (again) of additional money for the decontamination of low-level radiation areas and costs of temporary facilities for storing waste.”

In April the Japanese government gave TEPCO one trillion yen in exchange for a controlling stake in the company. The money was needed to prevent the company, the largest energy utility in Japan, from going under.

Related Article: Despite Fukushima, China Embraces Nuclear Power

To meet this new figure of ten trillion yen the company would need more support from the government, and that has left TEPCO’s chairman, Kazuhiko Shimokobe, very worried.

“If we address the swelling costs by doubling the amount of government bond issuance our firm will become an entity only for the purpose of dealing with post-accident issues. It will become difficult for us to raise money from the private sector so we will have to rely on the government for the financing of all of our business.”

By. Charles Kennedy of Oilprice.com


Join the discussion

Special Reports

8 Mega Trends

8 Mega Trends

By Oil & Energy Insider Analysts

8 OIL & GAS INDUSTRY MEGA-TRENDS AND HOW TO PROFIT FROM THEM
Here's what our 400 global energy assets are telling us to be prepared for right now...

LNG Technology

LNG Technology

By Oil & Energy Insider Analysts

THE "FLOATING REFINERY" STOCK THAT COULD FUND YOUR RETIREMENT
This company's incredible tanker technology could eliminate many of the world's offshore pipelines...

Subsea Production

Subsea Production

By Oil & Energy Insider Analysts

THE END OF OFFSHORE DRILLING?
This disruptive market will grow 84% to 270% over the next five years: Discover the 6 equipment suppliers set to profit.

Leave a comment

  • Curtis on November 08 2012 said:
    It is somewhat ironic that the costs of dealing with radioactivity which does decline exponentially is countered by the cost of decontamination which seems to be increasing exponentially. All of this in a finite world. HA!