Fukushima nuclear disaster to cost taxpayers up to 218.2 billion yen

March 24, 2018

Tokyo- The Fukushima nuclear disaster in 2011 is now seen costing taxpayers in Japan up to 218.2 billion yen, substantially larger than the previous estimate of 126.4 billion yen, the Board of Audit of Japan said Friday.

The audit board made the latest estimate after the government took a cabinet decision in December 2016 to raise the upper financial assistance limit from 9 trillion yen to 13.5 trillion yen for Tokyo Electric Power Company Holdings Inc. , the operator of the Fukushima No. 1 nuclear plant, which suffered the triple meltdown after being hit by a 9.0-magnitude earthquake and ensuing monster tsunami on March 11, 2011.

The government is borrowing funds from financial institutions for delivery to TEPCO through a public-private body to help pay compensation and other costs related to the worst nuclear accident in Japan.

The principal of the funds will be repaid from contributions by TEPCO and other power companies to the body, Nuclear Damage Compensation and Decommissioning Facilitation Corp., and proceeds from the sale of TEPCO shares owned by the body.

But interest payments will be shouldered by the government, or taxpayers.

According to the latest estimate, it will take 17 to 34 years for the government to finish repaying the funds and its interest payments will balloon to 131.8 billion to 218.2 billion yen.

The government plans to cover about 4 trillion yen of radiation cleanup costs with proceeds from the TEPCO share sale. The audit board said, however, that the plan requires TEPCO shares to be sold for at least 1,500 yen apiece, compared with the stock's current market price below 500 yen.

Furthermore, the board said additional costs may arise for the decontamination work and planned facilities for the temporary storage of tainted soil produced in the work, suggesting TEPCO redouble efforts to improve its profitability and corporate value to raise its share price. Jiji Press