TEPCO Submits New Biz Reconstruction Plan

Tokyo, Jan. 11 (Jiji Press)–Tokyo Electric Power Company Holdings Inc. has submitted a new business reconstruction program to the Japanese government, featuring plans to seek partners for its operations related to data centers and decarbonization. Under the new program, presented Friday, TEPCO aims to improve its profitability as huge costs are expected for compensation to victims of the March 2011 nuclear accident at its tsunami-stricken Fukushima No. 1 power plant and for decommissioning reactors at the plant in northeastern Japan. The details will be announced after receiving government approval by the end of this month at the earliest. The new plan includes a policy to promote preparations for the decommissioning of the nuclear plant, such as securing human resources. TEPCO is also believed to have included a policy to accept external investment in subsidiaries, such as electricity retail and renewable energy units, as part of efforts to improve the deteriorating financial situation and secure funds for new investments. The company presented its revenue projections for some 10 years from fiscal 2025, assuming that the restart of one nuclear reactor would improve its annual earnings by about 100 billion yen. TEPCO is expected to reflect the restart of the No. 6 reactor at its Kashiwazaki-Kariwa nuclear power plant in Niigata Prefecture, which is expected to be reactivated on Jan. 20, into its earnings from fiscal 2026, and the plant’s No. 7 reactor from fiscal 2029, when the construction of an antiterrorism facility is projected to be completed. It will maintain the framework of the previous plan to secure about 500 billion yen annually for compensation related to the nuclear accident and for decommissioning of the Fukushima No. 1 plant. TEPCO reviews its business reconstruction plan every two to four years. This is the fifth program and the first full revision since 2021. The company originally planned to compile a new program by the end of fiscal 2024, but in March last year, it released a revised version of the fourth program, taking into account the uncertainty over the timing of the restart of the Kashiwazaki-Kariwa plant. END [Copyright The Jiji Press, Ltd.]