Insurance Update

Japanese authorities have endorsed a set of measures intended to alleviate the plight of Tokyo Electric Power (TEPCO), due to the high compensation that will pay for the accident of the nuclear plant in Fukushima. Thus, from Tokyo expect to save more energy company throughout Asia.

According to the Kyodo news agency, the government determined the implementation of a state agency charged with ensuring the economic viability of TEPCO, injecting public money. The intention of the Japanese authorities is that the other companies that run nuclear plants in Japan soil, eight in total, allocate money to a fund managed by the state agency, and which will serve as insurance for possible new nuclear plant accidents.

However, this decision creates some doubt because it is likely that some of the eight companies to offset the money for the fund through increases in electricity bills. Against this background, many Japanese people are prepared to spend next summer with cuts in the flow of electricity, due to difficulties in some nuclear plants.

The government’s Japan includes monitoring the administration of TEPCO by an independent commission, and where it is expected the sale of assets, reduced payroll and wages. Read the rest of this entry »