Tepco to report billions in losses

Tokyo Electric Power Co. (Tepco) will likely report a net loss of more than 1 trillion yen (US$12.46 billion) for fiscal year 2010 because of the nuclear crisis at the company’s Fukushima Daiichi nuclear power plant, according to Reuters.

Tepco estimated the cost of decommissioning units 1-4 at the Fukushima plant at 600 billion yen (US$7.4 billion) and it plans to book the amount as an extraordinary loss for the fiscal year. The government will provide Tepco with 120 billion yen (US$1.4 billion) in support under an insurance program for nuclear accidents, Reuters said.

A new body will also be formed to support the company including Tepco and eight other regional electric companies with nuclear reactors. The body will also make loans to Tepco and, if necessary, buy preferred shares in the company, the article said.

JP Morgan had estimated Tepco's compensation losses at 2 trillion yen (US$24.7 billion) in the financial year that began in April, while Bank of America-Merrill Lynch said the losses could reach US$130 billion if the crisis continues.

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