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).
東京電力の福島第一原子力発電所の事故による被災者に対する賠償策の原案が１２日、明らかになった。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:
TEPCO pays:
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...
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4 comments:
Hey the Japanese public is getting a bargain, in the US the Price Anderson act limits the nuclear industry's liability to a paltry 10.5 billion dollars before the taxpayer has to pay the rest. This is a major argument against the nuclear industry, they can't buy private insurance because insurance actuaries are paid to determine risk and they have ALL universally decided that the nuclear industry is far too dangerous to insure. I think India has the weakest compensation laws in the nuclear industry they are only responsible for a few 100 million before they are off the hook.
Surely this is a national disaster that mandates a national response.
In general, I have been astonished at the utter inadequacy of Japanese disaster relief. In the US, a declaration of a national disaster area triggers low interest long term government loans to help the rebuilding, whereas in Japan thousands of old people are left to contemplate ruin in a shelter. Some generosity of spirit would do wonders, at least one would think, for the governments image.
Are the leaders just so isolated from ordinary life that this is hidden from them?
@netudiant, life has always been rather cheap in Japan. Besides, the Japanese government is so much deep in debt already and their "generosity" has to come forcibly from the citizens toward whom they are supposed to be generous.
Ropbbie,
The current actual number is $12.5 bn. Which is not much different. I make my point just to keep the record straight.
lapri,
Why does this remind me of WW2? Japan is modern, democratic, and yet habits of a thousand years are solidly entrenched.
No one is in charge. Or to put it differently: the collective rules.
The attitude seems to be: life is hard and then you die. Good bye.
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