Tepco turns to government for help on compensation

The head of Tokyo Electric Power today asked the Japanese government to share the burden for compensating those displaced by the crisis at its Fukushima Daiichi nuclear plant. The compensation bill has been estimated at billions of dollars.

The president of the stricken utility added it would carry out additional cost cutting measures as demanded by some cabinet ministers for it to take such steps before seeking public help.

Government officials and those from Tokyo Electric, and creditor banks have been scrambling to formulate a scheme that would allow the company to cope with the massive payouts. However talks have not yet concluded and some ministers have been saying that the company was not making enough effort to save money.

National strategy minister Koichiro Gemba dropped hints about share holders and bond holders of the company sharing some of the burden, when asked about issue.

 "In relation to any burden on taxpayers, it's important to consider the issue of those who hold Tokyo Electric shares and bonds," he told reporters.

Tokyo Electric and its creditor banks have been pushing for a scheme with substantial government help, arguing this was essential step to prevent its credit rating dropping to junk status, which would likely affect Japan's entire bond market.