June 15, 2011
The Kan Cabinet on June 14 approved a bill to establish a new organ to fund to Tokyo Electric Power Co. (TEPCO) to provide compensation for the Fukushima nuclear accident.
The newly established organ will give financial assistance to TEPCO based on contributions from other nuclear power plant operators as well as use of public funds.
It is possible that power companies will increase electric rates in order to make the required contributions. Meanwhile, the bill only “asks for the cooperation” of financial institutions giving loans to TEPCO and the cooperation of TEPCO’s major shareholders.
The bill’s primary goal is to provide prompt and adequate compensation to the Fukushima crisis victims. However, in the bill, the government is only required to play an “appropriate role” to help TEPCO pay compensation for the nuclear accident.
At present, TEPCO has just made temporary payments to the victims and has partially compensated for losses claimed by people in the agriculture, forestry, and fishery industries and small- and medium-sized business owners.
The bill should make clear the government’s active role having TEPCO pay appropriate compensation to the victims without further delay.
The newly established organ will give financial assistance to TEPCO based on contributions from other nuclear power plant operators as well as use of public funds.
It is possible that power companies will increase electric rates in order to make the required contributions. Meanwhile, the bill only “asks for the cooperation” of financial institutions giving loans to TEPCO and the cooperation of TEPCO’s major shareholders.
The bill’s primary goal is to provide prompt and adequate compensation to the Fukushima crisis victims. However, in the bill, the government is only required to play an “appropriate role” to help TEPCO pay compensation for the nuclear accident.
At present, TEPCO has just made temporary payments to the victims and has partially compensated for losses claimed by people in the agriculture, forestry, and fishery industries and small- and medium-sized business owners.
The bill should make clear the government’s active role having TEPCO pay appropriate compensation to the victims without further delay.
