TEPCO boss quits after huge loss

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TEPCO boss quits after huge loss

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The disaster at its tsunami hit Fukushima nuclear plant means Tokyo Electric Power has reported a 10.5 billion euro net loss for the fiscal year just ended.

It is the biggest loss ever by a non-financial Japanese company and prompting the firm to warn its future was uncertain.

TEPCO’s much-criticised president, Masataka Shimizu also resigned.

He said he was quitting – along with Sakae Muto, head of TEPCO’s nuclear power division – to take responsibility for the loss in credibility for nuclear safety. He apologised that “the Fukushima nuclear reactors caused so much anxiety, worry and trouble to society”.

There is major uncertainty over whether TEPCO can continue as a going concern.

Its biggest potential expense is compensation claims which some analysts said could be as much as 90 billion euros.

Japan’s parliament is discussing a plan to help the utility with a compensation scheme using taxpayers’ money and contributions from other nuclear plant operators.

TEPCO also has to cover the cost of the quake and tsunami damage to the plants and for a long time will have to spend millions to buy more gas and coal to replace lost nuclear power capacity.