TEPCO

Fukushima's TEPCO nationalized by Japanese government

Thursday, August 09, 2012 by: J. D. Heyes
Tags: Fukushima, TEPCO, nationalized

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
The five biggest lies about Ebola being pushed by government and mass media
Why does the CDC own a patent on Ebola 'invention?'
Ultraviolet light robot kills Ebola in two minutes; why doesn't every hospital have one of these?
EXCLUSIVE: Natural News tests flu vaccine for heavy metals, finds 25,000 times higher mercury level than EPA limit for water
Tetanus vaccines found spiked with sterilization chemical to carry out race-based genocide against Africans
Truvia sweetener a powerful pesticide; scientists shocked as fruit flies die in less than a week from eating GMO-derived erythritol
Irrefutable proof we are all being sprayed with poison: 571 tons of toxic lead 'chemtrailed' into America's skies every year
Russia taking McDonald's to court, threatens countrywide shutdown
Oregon man serving prison sentence for collecting rainwater on his own property
The best way to help your body protect itself against Ebola (or any virus or bacteria)
Global warming data FAKED by government to fit climate change fictions
Senator who attacked Doctor Oz over dietary supplements received over $146,000 in campaign contributions from Big Pharma mega-retailer and Monsanto
Healthy 12-year-old girl dies shortly after receiving HPV vaccine
Ebola outbreak may already be uncontrollable; Monsanto invests in Ebola treatment drug company as pandemic spreads
HOAX confirmed: Michelle Obama 'GMOs for children' campaign a parody of modern agricultural politics
Ben & Jerry's switches to non-GMO, Fair Trade ice cream ingredients
W.H.O. contradicts CDC, admits Ebola can spread via coughing, sneezing and by touching contaminated surfaces
BREAKING: CDC whistleblower confesses to MMR vaccine research fraud in historic public statement

Delicious
(NaturalNews) Shareholders in Tokyo Electric Power Co., owner of the tsunami-crippled Fukushima Dai-ichi complex, have approved what amounts to the nationalization of the utility, ahead of what most likely would have been bankruptcy without government funding to handle a massive amount of claims from those affected by the March 2011 nuclear accident.

The utility received some one trillion yen ($12.8 billion) in taxpayer funding so it can remain economically viable, reports said. The funding, along with the shareholder vote, gave the government a 50.11 percent share in the beleaguered power company.

Nuclear Power Daily reported the deal includes a provision that allows the Nuclear Damage Liability Facilitation Fund to raise the government's stake to 75.84 percent if the utility fails to implement required safety upgrades and reforms.

"We agreed to the plan because we urgently needed money and there was nobody else who could come up with ?1 trillion, except the government," TEPCO Chairman Tsunehisa Katsumata said, noting that the plan permits the utility to buy back the government's shares when it is financially able to do so. That said, the utility is liable to remain

"This was the best way forward," he said, to ensure a stable power supply, avoid insolvency and avert a major financial crisis.

"I thought my holding of Tepco shares would become worthless after the disaster at the Fukushima Dai-ichi plant," one shareholder said, according to The Wall Street Journal. "Instead, the share price is still hovering around ?100 or ?200. I believe the management has done a good job."

Skepticism remains

The paper said one indication of the changed atmosphere at the meeting which sealed the deal, the number of shareholders fell from 9,309 last year to 4,471 this year. This year's shareholder meeting lasted about five and a half hours, just a little short of last year's when TEPCO was still dealing with the crisis at its heavily damaged plant.

Despite the deal; however, some skepticism remains over whether the company is serious about making changes to a corporate culture that critics believe was a contributing factor to the accident.

"In addition, as a regional monopoly and the nation's largest power supplier, the company faces little competition and can expect government rescue no matter what happens, they argue," WSJ reported.

As a way to build cash, the company announced earlier this year that it was raising electric rates by 17 percent on corporate customers and 10 percent on households.

The size and scope of what amounts to a TEPCO bailout was not lost on a number of observers.

Historic government takeover

"Not only is it the biggest state intervention into a private non-bank asset since America's 2009 bail-out of General Motors," The Economist said. "In Japan it is also historic."

That's because, the publication noted, with the exception of a brief period of nationalization immediately preceding and then during World War II, Japan's power industry has always been "proudly private."

"Sadly, those days are long gone. Since the 1980s the utilities have looked more like bloated government departments than red-blooded businesses. Their bosses have tended to be lawyers more familiar with pulling the levers of political than electric power," said the magazine.

That, say critics of TEPCO, is precisely the kind of corporate culture that may have led to some cut corners and other discrepancies that may have deepened the nuclear accident there.

Also, there are other considerations. First, the rate hike; while it may be necessary for the company to return to profitability, there's no certainty the public will accept that willingly. Also, it may be hard for so many who have been impacted by the disaster to find the trust to approve of TEPCO's restarting of the plant's formerly damaged reactors.

"If the utility, and its new government owners, fail to achieve either, the government may eventually have to stump up more money, and the banks may have to reconsider any commitment to keep the credit flowing. In that case, the light that is now flickering at the end of the TEPCO tunnel will go out again," the magazine said.

Sources:

http://www.nuclearpowerdaily.com

http://online.wsj.com

http://www.economist.com

Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support NaturalNews.com by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite NaturalNews.com with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

GET SHOW DETAILS
+ a FREE GIFT

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.