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Loan ceiling for TEPCO to be raised

 

Japan’s government has decided to lift the ceiling for interest-free loans to the operator of the crippled Fukushima Daiichi nuclear power plant.
The government now estimates the facility will end up costing Tokyo Electric Power Company more than 194 billion dollars.

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Decommissioning the plant is expected to cost 4 times the original estimate of 17 billion dollars. Compensation for farmers is expected to rise to 70 billion dollars from 47 billion dollars.
The cost of decontamination work and constructing intermediate storage facilities for contaminated soil and waste materials is also likely to increase to 53 billion dollars from 31 billion dollars.
Against this backdrop, the government plans to raise the upper limit of its loans to TEPCO from the current 79 billion dollars to 123 billion dollars.
The government plans to have TEPCO and other utilities pay back the loans. It says the utilities include newcomers to the market following deregulation of the retail power business this year.
Speculation is growing that the decision may result in higher electricity prices, which will increase the burden on consumers.
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December 9, 2016 Posted by | Fukushima 2016 | , , , | Leave a comment

Japan to increase loan to Fukushima operator Tepco to $123 billion

Question to ask: why call this a loan when the law, like USA Price Anderson Act, limits nuclear power co from liability and puts the govt on the hook for everything beyond that?

Answer: I’d say most likely simple propaganda. That’s the taxpayers TRILLIONS that’s going to a ‘forever’ nuclear power plant black hole. That money will never be paid back to govt. The only thing I can imagine is that the Govt reneges on the agreement and socializes utilities in Japan. Because either the corporation nor govt can survive unless they do that…. or they can play fictionalized accounting for public.
What do you think?

 

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Japan will increase an interest-free loan to the operator of the wrecked Fukushima nuclear plant, Tokyo Electric Power, by more than a third to 14 trillion yen ($123 billion), a source familiar with the matter said on Thursday.

Spiraling costs from the world’s worst nuclear disaster since Chernobyl in 1986 are threatening the viability of the utility known as Tepco and hampering its ability to clean up its wrecked Fukushima Daiichi nuclear plant.

The increase in the loan from 9 trillion yen is to cover the costs for compensation and decontamination areas around the plant, according to the source, who is not authorized to speak to the media.

Three reactors melted down at the plant after a magnitude 9 earthquake in March 2011, which sparked a tsunami that devastated a large section of Japan’s northeastern coastline.

More than 15,000 people were killed in the natural disaster, which also caused a loss of power and cooling at the Fukushima station.

Explosions in the wake of the reactor meltdowns led to a massive release of radiation that prompted the evacuation of 160,000 people from areas around the plant, many of whom will never be able to return.

The disaster is likely to cost 22.6 trillion yen ($199 billion), more than double an earlier government estimate.

Costs for decommissioning the wrecked reactors will be covered by a separate arrangement from the loan, according to the Nikkei newspaper, which earlier reported the increase in the loan for Tepco.

http://www.reuters.com/article/us-japan-fukushima-support-idUSKBN13X00G?il=0

December 9, 2016 Posted by | Fukushima 2016 | , | 1 Comment