The details of a government plan have emerged which would make Tokyo Electric Power Company and the nation's other electric power companies pay for the damages sustained by individuals and businesses from the Fukushima I Nuclear Power Plant accident.
However, there's a hitch. Beyond 5.65 trillion yen or US$66.7 billion, the national government would pick up the tab, 100%.
In other words, the entire amount of compensation would be paid one way or another by the Japanese people, both through raised rates and raised tax, and probably through inflation (finally) as Bank of Japan goes into printing mode.
From Yomiuri Shinbun (3.18AM JST 4/13/2011):
The base plan for the compensation scheme for the victims of Tokyo Electric Power Company's Fukushima I Nuclear Power Plant accident was revealed on April 12.
Modeled after the compensation scheme of the Three Mile Island accident, a "mutual aid" fund would be set up jointly by TEPCO and other electric power companies. Each electric power company would be required to pay 30 to 50 billion yen (US$354 to 590 million) per reactor. TEPCO would pay 2 to 3.8 trillion yen (US$23.6 to 44.9 billion), and the national government would pay 100% beyond the amount to be paid by the electric power companies. In order to establish the compensation scheme, the government is looking to pass a special legislation.
The national government and TEPCO are about to enter into a negoation over the compensation scheme. According to the base plan, TEPCO would pay 100 to 200 billion yen (1.18 to 2.36 billion) per year from their profit for 15 years, in addition to 510 to 850 billion yen (US$6 to 10 billion) for the 17 reactors it owns. The other electric power companies own 37 reactors total, and they would be required to pay according to the number of the reactors each owns. 9 electric power companies' total [that excludes TEPCO] would be between 1.1 to 1.8 trillion yen (US$13 to 21 billion).
米スリーマイル島の原発事故の賠償制度を参考に、東電以外の電力各社も加わった「共済制度」の仕組みを創設する。各社には保有する原発１基あたり ３００億～５００億円の負担を求める案を軸に検討する。東電の負担額は２兆～３・８兆円とし、電力各社の支払い上限を超える部分は政府が全面支援する。賠 償制度の実現に向け、政府は特別立法の制定も視野に入れる。
政府と東電は近く賠償案の本格検討に入る。原案では東電は同社の毎年の利益から１０００億～２０００億円を１５年間払うほか、保有する原発１７基 分の負担金５１００億～８５００億円程度を支払う。東電以外の電力各社も国内に３７基の原発を保有しており、基数に応じて負担金を拠出する。電力９社の合 計は１・１兆～１・８兆円程度となる。
Soooo... to summarize:
100 to 200 billion yen* (1.18 to 2.36 billion) per year x 15 years = 1.5 to 3 trillion yen (US$17.7 to 35.4 billion)
510 to 850 billion yen** (US$6 to 10 billion) for the 17 reactors it owns (one-time)
Total: 2 to 3.85 trillion yen (US$23.6 to 45.5 billion)
(*TEPCO's net income was 300 billion yen.)
(**TEPCO's revenue was 5308 billion yen, and operating income was 576 billion yen. So this money for the reactors would come from their revenue or operating income, which would significantly reduce their tax bills.)
9 electric power companies pay:
1.1 to 1.8 trillion yen (US$13 to 21 billion)
Total payment by the nation's electric power companies:
3.1 to 5.65 trillion yen (US$36.6 to 66.7 billion)
Above 5.65 trillion yen or US$66.7 billion, the national government would pick up the tab.
$66.7 billion is 1.3% of Japan's GDP, which is $5 trillion.
(Who are they kidding, other than themselves?)
This gotta be bullish for TEPCO's stock...