The TEPCO Fund

The Japanese government has had to step in to ensure that victims of the Fukushima disaster are compensated the day after TEPCO finally admits the obvious, that at least one of the reactors has melted through its containment vessel.

From the BBC: Japan’s government approves Tepco compensation scheme

Japan’s government has approved a plan to help Tokyo Electric Power (Tepco) compensate victims of the crisis at its tsunami-crippled nuclear plant.

Payouts are expected to run into the tens of billions of dollars over the Fukushima nuclear plant breakdown.

The assistance could help Tepco avoid bankruptcy, but the government insisted it was not meant as a bail-out.
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Under the plan a state-backed institution will be created from which Tepco can draw money to pay out claims.

In return the company will fall under close government supervision. It will remain listed on the stock exchange but will use profits to pay back the money over a period of years.

Tepco – which serves an area that accounts for 33% of Japan’s economy – had earlier agreed to drastic restructuring in return for government help.

The conditions agreed by the company include massive cost-cutting, no upper limit for compensation payouts and accepting an investigation of its management.

Other electricity companies with nuclear power stations will also be expected to contribute, says the BBC’s Roland Buerk in Tokyo.
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On Thursday, Tepco said that damage to a reactor at the Fukushima plant was worse than originally thought.

Water is leaking from the pressure vessel surrounding reactor 1 – probably because of damage caused by exposed fuel rods melting, according to a spokesman.